Economic Calendar

Friday, July 4, 2008

Shanghai Copper Falls for First Day in Three on London Decline

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By Glenys Sim

July 4 (Bloomberg) -- Copper futures in Shanghai fell for the first day in three, tracking a decline in London overnight, as a strengthening dollar curbed demand for raw materials as alternative investments.

Copper fell yesterday on the euro's decline to a one-week low against the dollar after European Central Bank President Jean-Claude Trichet signaled he may not lift the benchmark interest rate again this year.

``Shanghai is just mimicking the fall on the international markets last night,'' said Yang Wenhu, a trader at Northern Futures Co. in Dalian.

Copper for September delivery lost as much as 1,010 yuan, or 1.6 percent, to 63,220 yuan ($9,216) a metric ton on the Shanghai Futures Exchange. The most-active contract stood at 63,340 yuan at 2:46 p.m. local time.

Copper for delivery in three months rose $19.75, or 0.2 percent, to $8,664.75 a ton on the London Metal Exchange at the same time, after falling as much as 1 percent to $8,630 yesterday. Copper, headed for its third weekly gain, climbed to $8,940 a ton July 2, the highest ever.

Pressuring prices was the end of a three-day work stoppage at three mining operations in Peru, the world's third-largest producer of the metal.

``Supply disruptions which occur during the slow seasonal period only serve to improve sentiment and provide some support,'' said Yang. ``The international copper market will continue to be dictated by moves in the dollar, equities and the rest of the commodities complex.''

Among other LME-traded metals, aluminum was little changed at $3,183 a ton, zinc was up 1 percent at $1,800, and nickel added 0.7 percent to $21,000. Lead slipped 2.5 percent to $1,570, while tin had not traded as of 2:47 p.m. in Singapore.

To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net


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