BLBG:Copper in London Set for Longest Losing Streak in Three Months on Greece
Copper declined to the lowest in more than three weeks after a decision on a second bailout for Greece was postponed, spurring concern the nation may be forced to default. Aluminum, zinc and lead also fell.
Three-month copper on the London Metal Exchange dropped as much as 1.6 percent to $8,233 a metric ton, the lowest since Jan. 23. The contract fell for a fifth day, poised for the longest losing streak since November, and was at $8,252 by 1:45 p.m. Shanghai time. The May-delivery contract on the Comex lost 1.4 percent to $3.758 a pound.
Concern that Greece will miss a debt payment next month grew as a decision slated for tonight on 130 billion euros ($171 billion) of aid was postponed until at least Feb. 20 and possibly until after a full-time Greek government emerges from elections later in the year.
“Copper is suffering a double whammy from the delay of an effective resolution in Europe and weak Chinese demand,” said Li Ye, an analyst at Shanghai Jiuheng Futures Co. “The rally in January, which was without much support from fundamentals, provided room for the slide.” The metal gained 9.5 percent in January, ending a two-month decline.
World copper production exceeded demand by 69,100 tons last year, compared with a shortage of 175,000 tons in 2010, the World Bureau of Metal Statistics said yesterday. The metal for delivery in May on the Shanghai Futures Exchange fell 2.2 percent to 59,110 yuan ($9,382) a ton.
Peru’s largest copper producers, including Freeport-McMoRan Copper & Gold Inc., Southern Copper Corp. and Xstrata Plc, face the risk of blackouts next year because of power line delays in the southern Andes, Mark Hoffmann, vice president at the National Society of Mining, Petroleum & Energy, said in an interview in Lima.
On the LME, aluminum fell 0.6 percent to $2,188 a ton, zinc dropped 0.9 percent to $1,993 a ton, and lead lost 0.7 percent to $2,047.75 a ton. Nickel declined 0.8 percent to $19,923 per ton and tin retreated 0.6 percent to $24,450 per ton.
To contact Bloomberg News staff for this story: Helen Sun in Shanghai at hsun30@bloomberg.net
To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net
