Copper fell for a third day in New York on a decline in imports of the metal into China, the world’s largest consumer. Inbound shipments slipped 3 percent in May from the prior month, customs figures showed today, as users drew down inventories and higher London prices made imports more expensive. Prices also retreated as copper inventories tracked by the London Metal Exchange climbed for a ninth week in 10. “There is a lot of uncertainty in the market and people just don’t know what position to take, so there is no volume,” said Magmura Kamanova, a broker at Sucden Financial Ltd. in London. Copper for July delivery dropped 4.8 cents, or 1.2 percent, to $4.0595 a pound by 8:35 a.m. on the Comex in New York. Prices are down 1.8 percent this week, headed for a second straight slide. Copper for three-month delivery fell 1 percent to $8,966 a metric ton on the LME. China imported 254,738 tons of copper and copper products in May, the figures showed. Deliveries were down 36 percent from a year earlier, according to Bloomberg data. Copper has dropped for three straight months as China raised interest rates and took other steps to curb above-target inflation. Manufacturing in the country advanced in May at the slowest pace in nine months, a report showed June 1, and another indicated the weakest growth in 10 months. Copper Stockpiles Copper inventories tracked by the LME rose for a fifth day to 477,925 tons, remaining at the highest level since May 2010. Stocks climbed 0.9 percent this week. Inventories monitored by the Shanghai Futures Exchange declined to near a 21-month low. Canceled warrants, or orders to draw copper from LME warehouses, gained to 20,200 tons. Nickel for three-month delivery on the LME dropped 1.5 percent to $22,860 a ton. OAO GMK Norilsk Nickel, the world’s biggest producer of the metal, plans to add copper, coal and iron-ore assets in Indonesia and Latin America as it seeks to overcome a reliance on nickel, Chief Executive Officer Vladimir Strzhalkovsky said in an interview. Aluminum lost 1.2 percent to $2,627 a ton. The lightweight metal moved into a so-called backwardation yesterday as cash aluminum traded at a premium of $1 a ton to the three-month contract before reversing to close at a discount of $24.75. Lead and zinc dropped in London and tin gained. To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Source