Feb. 16 (Bloomberg) –Copper declined for a fifth day, set for the longest losing streak since November, after a decision on a second bailout for Greece was postponed, spurring concern the nation may be forced to default.
Metal for delivery in three months on the London Metal Exchange dropped as much as 1.3 percent to $8,265 a metric ton, the lowest in more than three weeks, and traded at that level by 11:30 a.m. Shanghai time. The May-delivery contract on the Comex lost 1.1 percent to $3.7675 a pound.
Concern that Greece will miss a debt payment next month grew as a decision slated for tonight on 130 billion euros ($171 billion) of aid was postponed until at least Feb. 20 and possibly until after a full-time Greek government emerges from elections later in the year.
"Copper is suffering a double whammy from the delay of an effective resolution in Europe and weak Chinese demand," said Li Ye, an analyst at Shanghai Jiuheng Futures Co. "The rally in January, which was without much support from fundamentals, provided room for the slide." The metal gained 9.5 percent in January, ending a two-month decline.
Copper for delivery in May on the Shanghai Futures Exchange fell 2 percent to 59,220 yuan ($9,427) a ton.
Peru's largest copper producers, including Freeport-McMoRan Copper & Gold Inc., Southern Copper Corp. and Xstrata Plc, face the risk of blackouts next year because of power line delays in the southern Andes, Mark Hoffmann, vice president at the National Society of Mining, Petroleum & Energy, said in an interview in Lima.
On the LME, aluminum fell 0.5 percent to $2,190 a ton, zinc dropped 0.6 percent to $2,000 and lead was little changed at $2,060 a ton. Nickel declined 0.6 percent to $19,956 per ton and tin lost 0.4 percent to $24,500 per ton.