Copper dropped in London, Shanghai and New York on the prospect of further credit tightening in China, the world’s largest user, and as the dollar rebounded. Three-month delivery copper fell for a second day, by as much as 0.6 percent, to $8,242 a metric ton and traded at $8,245 by 10:18 a.m. in Singapore. The metal’s climb to a 27-month high of $8,388 a ton yesterday was deemed excessive after China raised the reserve requirements for the nation’s six largest banks, according to Beijing Capital Futures Co. “The news about the reserve ratio hike is weighing on sentiment and while it may not have much of an impact, it renews concerns about interest rate hikes ahead,” said Beijing Capital’s analyst Xiao Jing. “The slight bounce in the dollar today is also pressuring commodities lower.” January-delivery copper on the Shanghai Futures Exchange lost as much as 1.4 percent to 62,120 yuan ($9,308) a ton, before trading at 62,330 yuan. Futures for December delivery on the Comex in New York dropped as much as 0.9 percent to $3.7535 a pound. The dollar rose for a second day against a six-currency basket before the release of the Federal Reserve’s Sept. 21 policy meeting minutes today. The central bank said at that meeting it was willing to ease monetary policy further. Among other LME-traded metals, aluminum fell 0.5 percent to $2,389 a ton, zinc dropped 0.3 percent to $2,324 a ton, lead declined 0.9 percent to $2,295 a ton, and nickel lost 0.5 percent to $24,200 a ton. Tin hadn’t traded by 10:20 a.m. in Singapore. To contact the reporter on this story: Glenys Sim in Singapore at Gsim4@bloomberg.net To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

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