Copper Falls for Third Day as Stockpiles Weaken Demand OutlookBloomberg News
Copper fell for a third day as higher stockpiles pointed to weaker demand amid a resurgence in concern that Europe’s debt crisis will continue to drag on the global economy.
Copper for three-month delivery fell as much as 0.2 percent to $8,231.25 a metric ton on the London Metal Exchange, and traded little changed at $8,239 at 11:34 a.m. in Beijing.
Copper inventories monitored by Comex in New York rose to 74,457 tons yesterday, the highest level since May, while stockpiles monitored by the LME gained for a second day to 386,500 tons, the highest since December 2011. European Central Bank policy makers meet today as political and banking turmoil threatens to renew the region’s sovereign-debt crisis, with the Spanish Prime Minister facing calls to resign and Italy’s Banca Monte dei Paschi di Siena SpA facing criminal probes.
“There is no indication of bullishness from the demand side,” Fang Junfeng, an analyst at Shanghai Cifco Futures Co., said by phone from Shanghai. “The problems facing the European region have led some traders to see the outlook for the global economy as negative.”
Copper for delivery in May fell 0.5 percent to 59,570 yuan ($9,550) a ton on the Shanghai Futures Exchange.
On the LME, aluminum, zinc, nickel and lead also fell, while tin climbed.