Copper fell for a fifth day in New York after Chinese production of the metal climbed to a record amid concern the government will tighten credit, slowing growth and curbing commodity demand.
Refined output in China, the world’s biggest consumer, rose 24 percent from a year earlier to 470,000 metric tons in March, the statistics bureau said. That’s a monthly record, according to Minmetals Starfutures Co. The country’s economy expanded by a more-than forecast 9.7 percent in the first quarter, and inflation accelerated in March to the fastest pace since 2008, adding pressure for more monetary tightening.
“Record copper output in China” weighed on sentiment, John Meyer, an analyst at Fairfax IS inLondon, said today in a report. The economic data “demonstrates China’s continuing drive for growth, and that measures to slow inflation have not yet had severe impact.”
Copper futures for July delivery slid 2.25 cents, or 0.5 percent, to $4.281 a pound at 11:13 a.m. on the Comex in New York. A close at that price would leave the contract down 5.3 percent for the week.
On the London Metal Exchange, copper for three-month delivery dropped $22.50, or 0.2 percent, to $9,387.50 a ton ($4.26 a pound).
Inventories tracked by the LME increased 1.4 percent this week, the ninth gain in 10 weeks. Stockpiles are up 29 percent from the 2010 low on Dec. 10. Nissan Motor Co., Japan’s second- largest carmaker, may delay reopening an engine plant damaged by the March 11 earthquake after several aftershocks.
“The market had a substantial selloff this week” amid rising LME supplies and a slowdown in the Japanese auto industry, said Rich Ilczyszyn, a senior strategist at Lind- Waldock, a broker inChicago. “We need a catalyst for copper to take off.”
Also in London, aluminum, lead, nickel and tin gained. Zinc was little changed.
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