Copper Rises to Nine-Week High on China’s Demand OutlookDebarati Roy
Copper futures fell from a nine-week high amid concern that demand from Japan, the world’s third-largest economy, may decline.
The Asian nation’s second-quarter gross domestic product rose an annualized 2.6 percent, after gaining 3.8 percent the previous quarter, the Cabinet Office reported today. Last week, copper jumped 4.2 percent, the most since September, after factory output climbed and imports by China, the biggest consumer of the metal, rose to the highest in 14 months, data showed last week.
“Japan’s GDP data is negative for copper,” Bill O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview. “Also, there is bound to be some profit taking after a nice rally.”
Copper futures for September delivery fell 0.1 percent to settle at $3.303 a pound at 1:20 p.m. on the Comex in New York. Earlier, the price reached $3.329, the highest for a most-active contract since June 7.
Prices have dropped 9.6 percent this year on concern that demand from China is slowing and that the Federal Reserve may taper the pace of its monetary stimulus.
On the London Metal Exchange, copper for delivery in three months fell 0.3 percent to $7,251 a metric ton ($3.29 a pound), ending a four-session rally. Aluminum, nickel, tin, lead and zinc gained.