By Anna Stablum Aug. 4 (Bloomberg) -- Copper retreated from a 10-month high in London, leading a decline in industrial metals, as inventories expanded. Stockpiles of copper monitored by the London Metal Exchange rose 1.3 percent to 285,900 metric tons, advancing for a third consecutive day. Metals also fell on concern that prices no longer reflect the outlook for demand as the world economy recovers from its steepest slump since World War II. “The stocks in copper have been rising now for several weeks,” Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt, said by phone. “Future strong moves in prices will be on the downside.” Copper for three-month delivery on the London Metal Exchange fell $50, or 0.8 percent, to $5,950 a ton by 10:11 a.m. The contract earlier reached $6,070, the highest compared with intraday prices since Oct. 2. The metal for September delivery dropped 3.05 cents, or 1.1 percent, to $2.708 a pound on the New York Mercantile Exchange’s Comex division. Nickel fell $80, or 0.4 percent, to $18,750 a ton in London, the smallest move among the six main metals traded on the LME. It earlier rose to $19,200, the highest since Sept. 15. Supply disruptions reported by Vale SA, the world’s second- biggest nickel producer, is supporting prices, Weinberg said. Vale stopped output at its Thompson mine and processing plant Aug. 1 for scheduled maintenance. A strike halted output at its Voisey’s Bay nickel plant in Newfoundland and workers at Sudbury, the operation in Ontario, went on strike July 13. Vale Nickel Production Vale produced 275,400 tons of nickel last year, of which 191,700 tons came from the three Canadian sites. Global nickel was as much as 1.4 million tons last year, according to Standard Bank Group Ltd. Copper has risen 94 percent this year on the LME, helped by first-half Chinese imports that more than doubled. Chinese imports probably dropped last month and demand elsewhere is still weak, Weinberg said. Among other LME metals for three-month delivery, aluminum fell $34, or 1.7 percent, to $1,936 a ton. The metal reached $1,981 yesterday, the highest since Nov. 11. Zinc dropped 0.7 percent to $1,832 a ton. It rose to $1,865 yesterday, the most since Sept. 15. Lead fell 1.2 percent to $1,926 a ton, declining from yesterday’s high of $1,968, the most since Sept. 26. Tin retreated 2.2 percent to $14,675 a ton. To contact the reporter on this story: Anna Stablum in London at astablum@bloomberg.net.

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