Copper fell on the Shanghai Futures Exchange following a drop in London prices last week when China’s markets were closed for the Lunar New Year vacation. London copper dropped 3 percent to $3,155 a metric ton last week on a declining economic outlook. Global inventory jumped 16 percent to 491,525 tons as the recession in the U.S., the world’s second-largest copper use after China, reduces demand from builders and manufacturers. “Shanghai copper is matching the declines in London which has further downside risks due to economic concerns,” analyst Yao Wei at Jinrui Futures Co. said in an e-mailed report today. April-delivery copper on the Shanghai Futures Exchange plunged as much as 3.5 percent to 24,940 yuan ($3,642) a ton and traded at 25,150 yuan at 2:10 p.m. local time. Copper for delivery in three months on the London Metal Exchange fell 0.8 percent to $3,130 a ton. The U.S. Institute for Supply Management’s factory index this month was probably 32.5 in January from a revised 32.9 the prior month, according to a Bloomberg survey. A reading of 50 is the dividing line between growth and contraction. The report is due today. “The market focus will turn to post-vacation Chinese consumption, which we see no sign to feel optimistic about,” analysts led by Tan Wentao at HNA Topwin Futures Co. said in an e-mailed report today. China’s manufacturing contracted for a sixth month in January as the global recession sent growth sliding in Asia’s export-driven economies. The CLSA China Purchasing Managers’ Index rose to a seasonally adjusted 42.2 from 41.2 in December, CLSA Asia-Pacific Markets said today in an e-mailed statement. A reading below 50 reflects a contraction. Among other LME-traded metals, aluminum added 0.4 percent to $1,355 a ton, nickel dropped 0.9 percent to $11,100 a ton, zinc rose 2.1 percent to $1,120 and lead increased 1.3 percent to $1,135.

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