Copper Falls With Other Metals as German Factory Orders Declineby
Lead declines to lowest since 2010 on emerging-market slowdown
``Upward moves are quite fragile,'' says ANZ strategist
Copper retreated from its highest close in two weeks as German factory orders unexpectedly fell in a sign that Europe’s largest economy is vulnerable to weaker growth in China and other emerging markets. Lead fell to the lowest level since 2010.
All metals declined, with copper dropping 0.7 percent to $5,140.50 a metric ton at 2:26 p.m. in Hong Kong, after climbing 1.5 percent on Monday. Lead and nickel slid as much as 0.8 percent, while zinc lost as much as 1.2 percent.
A China-led slowdown in emerging markets is threatening Germany’s export-oriented economy. Factory orders, adjusted for seasonal swings and inflation, shrank 1.8 percent in August after decreasing a revised 2.2 percent in July, data from the Economy Ministry in Berlin showed on Tuesday. Copper is declining a day after Glencore’s chief, Ivan Glasenberg, and Pan Pacific Copper Co. Ltd., Japan’s biggest producer, said the market would begin to tighten, helping prices.
“Any upward moves are quite fragile at the moment,” Daniel Hynes, senior commodity strategist at Australia & New Zealand Banking Group Ltd., said by telephone from Sydney. “Certainly the commentary from Glencore was interesting and provided a bit of support, but that’s melting away pretty quickly.”
China’s financial markets remain shut until Thursday for a national holiday.