Copper Snaps Four-Day Rally as Investors Await China Trade Data

SINGAPORE, Sept. 9 -- Copper snapped a four-day rally as some investors sold the metal to lock in gains before China, the world's largest metals consumer, reports trade and economic data due on Sept. 11.

    The Chinese statistics bureau and customs departments are scheduled to report data including figures tracking industrial production, trade, fixed-asset investments and inflation. The People's Bank of China is also scheduled to report figures for August money supply and loans.

    "Investors are being cautious and taking the opportunity to take some money off the table before China's trade data is released, because that will be where the direction will come from next," Li Rong, chief analyst at Great Wall Futures Co., said from Shanghai today.

    Three-month delivery copper on the London Metal Exchange fell as much as 0.6 percent to $6,435 a metric ton, and traded at $6,460 a ton at 11:06 a.m. in Singapore.

    December-delivery copper in New York slipped 0.3 percent at $2.9470 a pound, while the December-delivery contract on the Shanghai Futures Exchange added 0.8 percent to 50,250 yuan ($7,360) a ton, paring an earlier 2 percent gain.

    A pause in the global equities rally also weighed on copper prices, said Li. The regional benchmark MSCI Asia Pacific Index fell for the first time in five days after JPMorgan Chase & Co. downgraded Japanese banks. The metal used in construction and automobiles has more than doubled this year as the stock index jumped 29 percent.

    Among other LME-traded metals, aluminum increased 0.3 percent to $1,900 a ton and zinc slid 1 percent to $1,960 a ton. Lead added 0.6 percent to $2,470 a ton, nickel gained 1.4 percent to $18,200 a ton, while tin hadn't traded by 11:11 a.m. in Singapore.

    (Source: Bloomberg)