BLBG: Copper in Shanghai Poised for Best Quarter Since at Least 2000
Copper futures in Shanghai dropped for a third day, paring gains made in the best quarter since at least 2000, on renewed concern that the global economic slump will slash demand for raw materials.
Copper in London closed below $4,000 a ton for the first time in three days yesterday on renewed concern the global credit crisis will deepen as the Obama administration warned some banks will need more government aid, and a possible failure of U.S. carmakers will delay a recovery of the largest economy.
“We’re just seeing Shanghai tracking overnight moves in London, that’s why it opened low and quickly moved higher,” said Li Jingyuan, analyst at Haifu Futures Co. in Shanghai. “The fall below $4,000 attracts some buying interest, especially from some bulls” aiming to end the quarter well.
Copper for June delivery on the Shanghai Futures Exchange declined as much as 2.2 percent from the previous settlement price to 32,530 yuan ($4,758) a ton, and was at 32,750 yuan at 10:30 a.m. Singapore time. Futures have gained 40 percent this quarter, the best quarterly performance since at least 2000.
Copper for three-month delivery on the London Metal Exchange added as much as 1 percent to $3,947 a ton, and was at $3,940 at 10:32 a.m. in Singapore. The metal is poised for its best quarter since the three months ended June 30, 2006, on optimism demand may improve on government stimulus measures.
The market data feed on the LME’s Select electronic system was down for about two and a half hours today, an LME official said by phone from London. The feed resumed at around 3:30 a.m. London time, he said. He declined to elaborate or be identified.
Copper is an indicator for the world economy and sets the pace for other industrial metals because an average of 400 pounds (181 kilograms) is used in homes and 50 pounds in cars, according to the Copper Development Association.
Among other LME-traded metals, aluminum rose 0.4 percent to $1,400 a ton, zinc lost 1.1 percent to $1,300 a ton, and lead was unchanged at $1,250 a ton. Nickel and tin hadn’t traded as of 10:45 a.m. in Singapore.
