Copper fell in London on concern an economic rebound in the U.S., the second-largest consumer, may be delayed by higher borrowing costs, weighing on demand. Treasuries rose today for the first time in a week, driving yields lower, after sliding on concern that record supply of government debt might overwhelm investor demand. Metals also retreated today as equities dropped, pulling the MSCI World Index down as much as 1 percent, and the dollar strengthened. “It will cause problems for any recovery, simply because people aren’t going to be able to finance increasing stocks,” Charles Kernot, an analyst at Evolution Securities Ltd. in London, said by telephone of the increase in bond yields. “They are not going to need metals as raw material in North America.” Copper for three-month delivery fell $40, or 0.9 percent, to $4,625 a metric ton by 10:40 a.m. on the London Metal Exchange, rebounding from a slide of as much as 2.4 percent. The contract rose 3.6 percent last week, the most in five weeks. Copper futures for July delivery lost 0.5 percent, to $2.1110 a pound on the New York Mercantile Exchange’s Comex division. The Dollar Index, which tracks the currency against the euro and five other monies, added as much as 0.5 percent, rising for a fourth day. Gains by the dollar make raw materials priced in the currency more expensive for holders of other monies. Lower Inventories Stockpiles of copper in warehouses monitored by the LME fell for a 15th straight session to 317,125 tons, the lowest since Dec. 15. Inventories have shrunk more than 40 percent from a peak at the end of February as China, the world’s largest consumer, bought metal for stockpiles. China has yet to decouple from the West, Marius Kloppers, chief executive officer of BHP Billiton, said yesterday. Still, he forecast a protracted rebound for the world economy and no “sharp rebound” in commodities demand. BHP is the world’s biggest mining company. Continued Chinese buying would support copper prices, Evolution’s Kernot said. “Without that, we will easily see copper prices go back below $4,000 a ton” over the course of the summer in the Northern Hemisphere, he said. China, the world’s biggest metals consumer, increased imports of copper and aluminum to a record in April as buyers replenished stockpiles needed for the country’s 4 trillion yuan ($586 billion) stimulus program, according to customs figures released this month. Copper has climbed 51 percent this year on the LME, the most among the exchange’s main industrial metals. Aluminum ‘Oversupply’ Among other LME metals for three-month delivery, aluminum slipped $1.75, or 0.1 percent, to $1,403.25 a ton. The lightweight metal yesterday fell as much as 3.8 percent, the largest intraday drop since Feb. 20. LME-monitored inventories rose today to a record 4.23 million tons. “There is a huge oversupply of aluminum,” Kernot said, predicting that prices probably will slip in coming months even after “remarkable” industry cutbacks in production. Aluminum companies probably will deepen cutbacks as demand for some products hasn’t improved in what is typically the best quarter of the year, according to Norsk Hydro ASA, Europe’s third-largest producer of the metal. “It is clear that the industry has to do more to balance out their production to better match demand,” Chief Executive Officer Svein Richard Brandtzaeg said yesterday. Nickel slid 1.1 percent to $13,250 a ton, and tin dropped 0.9 percent to $13,475 a ton. Lead fell 0.4 percent to $1,440 a ton, and zinc eased 0.4 percent to $1,454 a ton.

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