The price of copper fell 1.5 percent in New York Tuesday after factory-gate prices slumped further in China, the world’s biggest consumer of the metal, reflecting a slowdown and excess capacity in the nation’s economy.
Producer prices dropped 2.7 percent on the year in June, figures from China’s statistics bureau showed Tuesday, the worst run of declines since 2002. Citigroup Inc. on Monday cut its forecast for the country’s expansion this year, citing low odds that the government will take steps to stoke growth.
“We are not expecting any stimulus measures from China,” William Adams, an analyst at Fastmarkets.com in London, said in a report Tuesday.
Copper for delivery in September declined 1.5 percent to $3.054 a pound by 7:44 a.m. on the Comex in New York. Copper for delivery in three months fell 1.5 percent to $6,730 a metric ton on the London Metal Exchange.
Prices also retreated amid signs that supply is ample. Rio Tinto Group made the first commercial shipment from its $6.6 billion Oyu Tolgoi copper mine in Mongolia. Freeport-McMoRan Copper & Gold Inc. resumed concentrate deliveries from Grasberg in Indonesia, where activity was interrupted by a fatal accident in May.
Copper stockpiles monitored by the LME fell 1 percent to 650,125 tons, daily exchange figures showed. Inventories in Johor, the biggest global storage site for the metal, slid 1.9 percent, the most since January 2012. Orders to take the metal from warehouses dropped the most since May 14 to 347,350 tons.
Aluminum for delivery in three months on the LME declined 1 percent to $1,785 a ton. Alcoa Inc., the largest U.S. producer of the lightweight metal, reported second-quarter earnings that beat analysts’ estimates and said it still expects world demand to increase 7 percent this year.
Tin fell 0.3 percent to $19,400 a ton. Shipments from Indonesia, the world’s largest exporter, reached an 18-month high in June as smelters boosted sales before a tighter purity standard took effect, Trade Ministry figures showed.
Zinc, lead and nickel dropped in London.
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