Base Metals Drop After Rising Most in Almost Two Months
Industrial metals declined as concerns remained that economic growth in China, the biggest user, is slowing.
Copper for delivery in three months on the London Metal Exchange declined as much as 0.9 percent to $6,919 a metric ton and was at $6,937.75 by 10:28 a.m. in Shanghai. Metal for delivery in September on the Comex fell 0.4 percent to $3.146 a pound.
China’s economic expansion in the second quarter may slow to about 7.5 percent, the China Securities Journal reported today, after two gauges of manufacturing released yesterday showed growth slowing. Chinese bank valuations are close to their lowest on record as the interbank funding crisis exacerbates investors’ concern that earnings growth will stall and defaults may surge.
“Concerns that China’s growth is slowing persist, leading to some profit-taking after the gains yesterday,” Xu Liping, an analyst at HNA Topwin Futures Co., said by phone from Shanghai.
Copper for delivery in October on the Shanghai Futures Exchange climbed 1.2 percent to 50,000 yuan ($8,159) a ton.
On the LME, aluminum, nickel, zinc, tin and lead fell.
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