Base Metals Drop After Data Showed China Growth Slowed
Copper climbed after China’s economic growth in the second quarter met analysts’ estimates. Aluminum and nickel pared their declines.
Copper for delivery in three months on the London Metal Exchange gained as much as 0.5 percent to $6,985 a metric ton, before trading at $6,977.50 at 10:58 a.m. in Shanghai. Aluminum, which climbing to a one-month high on July 12, pared a 0.8 percent loss to trade 0.5 percent lower at $1,835 a ton while nickel fell 0.2 percent to $13,753 a ton after earlier falling as much as 1.1 percent.
China’s gross domestic product grew 7.5 percent in the second quarter, matching the median estimate in a Bloomberg News survey. It slowed from 7.7 percent in the first quarter. Industrial production rose 8.9 percent in June from a year earlier, compared with the 9.1 percent median forecast and a 9.2 percent gain in May.
“Data overall is in line with market expectations,” said Cheng Xiaoyong, an analyst at Baocheng Futures Co. “Because officials have said these levels are acceptable, there probably won’t be any policies rolled out to stimulate growth.”
China’s Finance Minister Lou Jiwei said on July 11 that 6.5 percent expansion wouldn’t be a “big problem.”
Metal for delivery in September on the Comex rose 0.2 percent to $3.1595 a pound. Net-short positions, or wagers on falling Comex prices, held by funds fell to 26,284 futures and options as of July 9 from 26,963 a week earlier, according to the U.S. Commodity Futures Trading Commission.
Copper for delivery in November on the Shanghai Futures Exchange rose 1 percent to 50,190 yuan ($8,176) a ton.
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