Copper Drops as China's July Imports Decline From Record High

SHANGHAI, Aug. 11 -- Copper slipped for a second day in London as China's imports of the metal declined from a record in July and the strengthening dollar eased inflation concerns.

    The metal declined as much as 1 percent after China's imports of copper and its products dropped for the first time in six months in July, after higher prices made purchases unprofitable. Imports decreased to 406,612 metric tons last month, the Beijing-based customs office said today. That's down 15 percent from a record amount in June, according to Bloomberg data. Aluminum shipments also fell last month.

    "China's slowdown in purchases is obviously bearish for metals, yet we've also got to see how the dollar is moving in the coming days," Pang Jie, an analyst at Zhejiang Zhongda Futures Co., said by phone today.

    Three-month delivery copper on the London Metal Exchange dropped 0.3 percent to $6,115 a metric ton at 12:29 p.m. in Singapore. Copper for November delivery on the Shanghai Futures Exchange fell as much as 1.7 percent to 47,880 yuan ($7,005) a ton and was at 48,370 yuan a ton by the 11.30 a.m. local time trading break.

    The Dollar Index, a gauge of the U.S. currency's strength, was little changed today, trading near the highest in more than a week before the Federal Open Market Committee meeting on monetary policy today in Washington.

    "As market expectations are the U.S. wouldn't need more money supply to fuel its recovery, the dollar may rebound in the short term and cause a temporary fall in commodity prices," analysts led by Tan Wentao at HNA Topwin Futures Co. said in an e-mailed report today.

    Among other LME-traded metals, aluminum was little changed at $1,970 a ton, zinc declined 0.3 percent to $1,845 a ton and lead dropped 0.8 percent to $1,860 a ton. Nickel lost 1.2 percent to $19,950 and tin slid 1 percent to $14,600 as of 12:33 p.m. in Singapore.

    (Source: Bloomberg)