Copper Falls as Metal Inventories Increase to Six-Month High

By Millie Munshi

Aug. 28 (Bloomberg) -- Copper fell after inventories monitored by the London Metal Exchange jumped to the highest in six months, easing supply concerns.

Stockpiles gained 2,200 metric tons, or 1.3 percent, to 170,500 tons today, the highest since Feb. 6. Before today, copper dropped 5.9 percent this month as inventories gained 18 percent.

The metal ``has eased back this morning following another stock increase,'' analysts at Barclays Capital including Gayle Berry in London said in a report.

Copper futures for December delivery dropped 0.25 cent to $3.4425 a pound at 10:06 a.m. on the Comex division of the New York Mercantile Exchange. Earlier, the price fell as much as 1.3 percent and gained as much as 0.7 percent. The metal reached a record $4.2605 on May 5.

Copper for delivery in three months declined $10 to $7,640 a metric ton ($3.46 a pound) in London. Before today, the price gained 4.6 percent in the past 12 months.

To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net