Copper falls on fears of Chinese import cut

Copper fell in London on speculation that China, the world’s biggest user of the metal, will import less of the metal. Chinese imports of copper and products dropped 19 per cent in January from a 20-month high in December, the Beijing-based customs office said today. Copper accelerated declines yesterday on concern that US Treasury Secretary Timothy Geithner’s financial-rescue package will not be enough to stem the recession.

“The market is very disappointed with this US package, and if the US economy doesn’t recover China won’t either,” said Keith Wildie, a trader at ICAP Plc in London. “I don’t think anybody would be surprised by the drop in China’s imports. There’s obviously a slowdown there.”

Copper for delivery in three months fell $89, or 2.6 per cent, to $3,396 a metric tonne as of 9:27 am on the London Metal Exchange. Prices have climbed 11 per cent this year as demand from China is forecast to expand 1.2 per cent this year following last year’s 5.7 per cent jump, according to London-based research company CRU. Copper’s advance compares with a 1.3 per cent drop in the UBS Bloomberg CMCI Index of 26 commodities.

LME copper stockpiles jumped 2,025 tons to 516,450 tons, the most since October 31, 2003, according to the exchange today. They have climbed 52 per cent this year.

Nickel for delivery in three months dropped $500, or 4.6 per cent, to $10,300 a tonne, taking this year’s slide to 12 per cent. Tin stockpiles fell 85 tonnes to 8,770 tonnes, the lowest since January 22. The three-month contract fell $45, or 0.4 per cent, to $10,855 a tonne. Zinc dropped $28, or 2.4 per cent, to $1,138 a tonne. Aluminum fell $9.75, or 0.7 per cent, to $1,389.25 a tonne.