Copper May Fall Next Week on U.S. Jobs, Factory Index Reports

By Claudia Carpenter

Jan. 30 (Bloomberg) -- Copper may drop next week as the recession in the U.S. reduces demand from builders and manufacturers.

Fifteen of 27 analysts, investors and traders, or 56 percent, surveyed by Bloomberg News said copper would drop. Eight people, or 30 percent, expected a gain and four were neutral. Last week, 70 percent expected prices to fall.

Copper for delivery in three months on the London Metal Exchange has dropped 1 percent this week to $3,217 a metric ton.

The U.S. Institute for Supply Management’s factory index this month was probably 32.6, the median estimate of 21 economists surveyed by Bloomberg. The December reading of 32.4 was the lowest since 1980. The report is due Feb. 2. The U.S. Labor Department on Feb. 6 may show 500,000 jobs were lost in January, on top of 524,000 shed in December, a separate Bloomberg survey showed. That report is due Feb. 6.

If the reports are more negative than expected, copper may drop below $3,000 a ton, said David Thurtell, an analyst at Citigroup Inc. in London.

This week’s survey results: Bullish: 8 Bearish: 15 Neutral: 4

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net