Copper fell for the first time in three days on speculation slowing seasonal demand may increase stockpiles in China, the world’s largest user.
The metal used in electrical wiring and plumbing dropped 2.4 per cent after reaching a six-day high of $5,057.75 yesterday. Copper is up 62 per cent this year, as Chinese buyers boosted imports to records in May to replenish stockpiles.
“We’re approaching the slow demand season,” Li Junchao, an analyst at Western Mining Co.’s futures department, said from Shanghai on Thursday. “With Chinese stockpiles on the rise and imports still at such high levels, investors are unwilling to pay for metal over $5,000.”
Three-month delivery copper on the London Metal Exchange fell 1.4 per cent to $4,987 a tonne. Copper for September delivery in New York dipped 0.6 percent to $2.2665 a pound, having earlier lost as much as 1.6 per cent.
Stockpiles of copper monitored by the Shanghai Futures Exchange reached a 22-month-high of 68,536 tonnes last week, almost four-times the level at the start of the year. Imports in May were a record for a fourth straight month.
October-delivery copper on the Shanghai Futures Exchange rose 0.7 per cent to close at 39,190 yuan ($5,735) a tonne, having earlier fallen as much as 0.5 per cent.
Teck Resources Ltd., Canada’s largest diversified mining company, cut its 2010 copper production forecast 13 per cent because of “geotechnical issues” at its Highland Valley mine.
Total copper output may be 755 million pounds next year, down from a previous forecast of 870 million pounds, Vancouver-based Teck said yesterday in a Marketwire statement. Among other LME-traded metals, aluminum fell 0.6 percent to $1,650 a tonne, zinc dropped 1.3 per cent to $1,590.25 a tonne and lead lost 0.9 per cent to $1,690 a tonne.
Nickel fell 1 per cent to $15,350 a tonne, while tin retreated 1 per cent to $14,600 a tonne.
