Copper May Fall on Speculation of Curbs in China, Survey Shows

LONDON, Aug. 28 -- Copper may decline on speculation Chinese banks may restrict lending, curbing demand from the world's largest copper consumer, a survey showed.

    China's State Council called on authorities on Aug. 26 to "resolutely" curb overcapacity as the economy is still in a "critical period." Record imports into China have helped the metal's price to more than double this year.

    Eight of 15 analysts, investors and traders surveyed by Bloomberg, or 53 percent, said copper would fall next week. Seven respondents expected prices to rise.

    Copper for three-month delivery fell 0.5 percent this week to $6,240 a metric ton at 4:07 p.m. yesterday on the London Metal Exchange.

    The weekly copper survey has forecast prices accurately in 24 of the past 52 weeks, or 46 percent of the time.

    This week's survey results: Bullish: 7, Bearish: 8.

    (Source: Bloomberg)