BLBG:Copper Reaches Three-Month Low as Chinese Data Disappoints
Copper fell to the lowest in more than three months in London on worse-than-expected manufacturing data in China, the biggest industrial metals user. Lead and aluminum declined to the lowest levels this year.
China’s manufacturing Purchasing Managers’ Index was 50.1 in February, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today. The reading compares with 50.4 in January. A number above 50 indicates expansion. Copper stockpiles monitored by the Shanghai Futures Exchange rose to the highest since March 2012, while those tracked by the London exchange extended a 16-month high.
“From a macro perspective, a lot of short-term fears have arisen at a time when we’re not seeing any signs of a pick-up in physical demand,” Robin Bhar, an analyst at Societe Generale SA in London, said by phone today. China PMI was “barely holding above the 50 break-even level,” he said.
Copper for delivery in three months dropped 1.8 percent to $7,675 a metric ton by 10:03 a.m. on the London Metal Exchange. The metal declined to $7,658.50, the lowest since Nov. 19, after closing below its 200-day moving average of about $7,830 yesterday.
Copper for May delivery declined 1.8 percent to $3.4835 a pound on the Comex in New York. Trading in Comex copper contracts was 93 percent higher than the average in the past 100 days at this time of day.
Copper also fell as $85 billion of U.S. spending cuts were set to be triggered. The nation’s economy barely managed to expand in the fourth quarter, as its gross domestic product rose 0.1 percent at an annual rate, figures showed yesterday. The U.S. is the second-biggest copper buyer.
Copper stockpiles monitored by the LME rose for a 12th session, climbing by 2.7 percent 458,775 tons on deliveries in Johor, Malaysia, and Antwerp, Belgium, exchange data showed today. Orders to take metal from warehouses dropped to the lowest since June 11. Inventories in warehouses tracked by the Shanghai bourse expanded for a second week to 226,201 tons, the highest since March 15.
Aluminum for delivery in three months on the LME fell 2 percent to $1,965.50 a ton, after it went down to $1,963 a ton, the lowest since Nov. 23, in earlier trade. Lead declined 2.2 percent to $2,232.50 a ton, having earlier dropped to $2,225, the lowest since Dec. 10. Tin, nickel and zinc also fell.
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
