Copper Drops for Third Day as Other Base Metals Climb
Copper fell for a third day as the dollar climbed after better-than-expected U.S. employment data increased bets that the Federal Reserve will slow record monetary stimulus this year. Tin and zinc rose.
Copper for delivery in three months on the London Metal Exchange lost as much as 0.6 percent at $6,747.25 a metric ton and traded at $6,783.50 at 10:28 a.m. in Shanghai. On July 5, the price slipped 2.3 percent to close at $6,789, the lowest since June 28. The LME Index of six industrial metals slumped 2.6 percent on July 5, the most in two months. Tin rose 1.3 percent to $19,101 a ton today.
Employers added more jobs in June than forecast and the jobless rate held at 7.6 percent, close to a four-year low, the U.S. Labor Department reported on July 5. The Dollar Index, a gauge of the greenback’s strength against six major currencies, rose for a second day, reaching a three-year high of 84.588. Fed Chairman Ben S. Bernanke said last month the central bank may reduce its bond buying this year and end it in mid-2014 if growth meets policy makers’ estimates.
“The good employment data fueled the expectation the U.S. will exit the bond purchase as planned,” said Fang Junfeng, an analyst at Shanghai CIFCO Futures Co. “That will be negative for commodities priced in the dollar. Copper is more vulnerable to further sell off than other metals like aluminum zinc, which are already near production costs.”
Copper for delivery in October on the Shanghai Futures Exchange decreased 1.1 percent to 48,660 yuan ($7,927) a ton. Metal for delivery in September on the Comex was little changed at $3.0685 a pound.
On the LME, aluminum and nickel also increased.
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