Sep 15 (Bloomberg)—
Copper fell for a second day in New York as more economic data cast doubt on the strength of the recovery in the U.S., the world’s second-largest user.
The gain in U.S. industrial production slowed to 0.2 percent last month, after a 0.6 percent increase in July, figures from the Federal Reserve showed today. Manufacturing in the New York region expanded less than forecast in September. Before today, copper jumped 21 percent since July 1 as inventories dropped and the dollar weakened.
"There will be continued profit-taking” without positive "surprises” from economic data, said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. There will be a "correction” before copper can rise again, he said.
Copper for delivery in December fell 2.05 cents, or 0.6 percent, to $3.448 a pound at 10:01 a.m. on the Comex in New York.
Yesterday, the price dropped 0.3 percent. On Sept. 3, the metal reached $3.5345, the highest level for a most-active contract since April 27.
Prices also declined on concern that the government in China, the largest copper consumer, might take more steps to curb the real-estate market, one of the main sources of demand.
"The market is mostly driven by Chinese demand at the moment,” McGhee said.
On the London Metal Exchange, copper for delivery in three months dropped $71, or 0.9 percent, to $7,584 a metric ton ($3.44 a pound)
Aluminum, nickel, zinc and lead also fell in London. Tin gained 0.2 percent to $22,700 a ton after touching $22,990, the highest price since July 24, 2008.