- An industry group in China said on Tuesday that the country aims to boost aluminum usage by almost 20 percent in the next three years.
- Nickel, zinc and aluminum also fell on the LME, while lead and tin gained.
- Copper futures for December delivery declined 1.5 percent to $2.094 a pound on the Comex in New York.
Copper Drops to Erase Year’s Gains on LME as China Imports Slide
Copper fell for a fourth day, erasing its gains for the year, on surging inventories and signs of weak demand in China, the biggest consumer. Glencore Plc, the top copper supplier, fell after reporting profit declined by two-thirds.
Supply has been outpacing demand. China cut copper imports for a fourth month to the lowest level in 17 months, while inventories tracked by the London Metal Exchange rose 21 percent over the past three days to the highest since November.
“That is a precipitous spike. It’s definitely not helping copper’s cause,” Jason Schenker, president of Prestige Economics LLC in Austin, Texas, said in a telephone interview. China’s imports drop is “telling us what the health of the Chinese economy is.”
Copper for delivery in three months fell for a fourth day, declining 1.4 percent to $4,641 a ton ($2.105 a pound) at 4:33 p.m. on the London Metal Exchange and heading for the longest stretch of losses since July 7.
Glencore shares dropped as much as 6 percent, the most intraday since July 20, in London after posting a 66 percent drop in first-half profit on lower raw-materials prices. Jiangxi Copper Co., China’s biggest producer, said in an earnings report that while low prices had eroded earnings, the market may bottom out soon as central banks seek to boost growth.
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