Copper declined in Asia on concern the deepening global slump will curb metals demand amid a gain in stockpiles in China, the world’s largest consumer. Inventories tallied by the Shanghai Futures Exchange climbed 36 percent to 38,468 metric tons last week, the highest since July 24. Futures also fell as Asian equities dropped for a second day after Japan posted its first current account deficit in 13 years in January. “There’s a lot of hope pinned on China’s ability to offset falling demand everywhere else in the world,” Wang Xiaoli, an analyst at Goldbull Futures Co., said from Shenzhen. “Whether or not China can revive its own economy remains to be seen.” London Metal Exchange copper for delivery in three months fell as much as 3.2 percent to $3,600 a ton, before trading at $3,635 at 4:17 p.m. Singapore time. Copper for June delivery on the Shanghai Futures Exchange slid 3 percent to close at 28,910 yuan ($4,226). Earlier, the most active contract gained as much as 0.6 percent. The global economy is likely to shrink for the first time since World War II, and trade will decline by the most in 80 years, the World Bank said in a report yesterday. The World Bank’s assessment is more pessimistic than an International Monetary Fund report in January predicting 0.5 percent global growth this year. China last year unveiled a 4 trillion yuan ($585 billion) spending plan to boost its economy. China’s Premier Wen Jiabao last week said the country’s 8 percent economic growth target for this year is within reach. “Prices will continue to be volatile until there’s more evidence the government’s stimulus package worked,” Goldbull’s Wang said today. Among other LME-traded metals, aluminum rose 0.2 percent to $1,312.75 a ton, zinc gained 0.4 percent to $1,235 a ton and nickel fell 0.7 percent to $9,779 a ton. Lead rose 0.9 percent to $1,235 a ton, while tin hadn’t traded as of 4:18 p.m. in Singapore.

Source