Copper Declines for First Day in Three on Slowing China Demand

LONDON, June 25 -- Copper fell for the first time in three days on speculation slowing seasonal demand may increase stockpiles and slow demand from China, the world's largest user.

    The metal used in electrical wiring and plumbing dropped as much as 2.4 percent after reaching a six-day high of $5057.75 yesterday. Copper is up 63 percent 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 today. "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 percent to $4,987 a ton at 10:40 a.m. Singapore time. Copper for September delivery in New York dipped 0.6 percent to $2.2685 a pound, having earlier lost as much as 1.6 percent.

    Stockpiles of copper monitored by the Shanghai Futures Exchange reached a 22-month-high of 68,536 tons 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 2 percent to 39,280 yuan ($5,748) a ton, having earlier fallen as much as 0.5 percent.

    Among other LME-traded metals, aluminum fell 1.1 percent to $1,641 a ton, zinc dropped 1.9 percent to $1,580 a ton and lead lost 1.1 percent to $1,686 a ton. Nickel fell 1.3 percent to $15,300 a ton, while tin hadn't traded.

    (Source: Bloomberg)