By Glenys Sim
Oct. 1 (Bloomberg) -- Copper, little changed in Asia, may decline on speculation an economic recovery in the U.S. may falter after an unexpected drop in business activity.
Stockpiles of the metal monitored by London Metal Exchange warehouses gained 16 percent last month. The Institute for Supply Management-Chicago Inc.’s business barometer trailed economists’ estimates. Companies in the U.S. cut payrolls by a greater-than-forecast 254,000 jobs, a report from ADP Employer Services showed.
“We would remain cautious in the near-term as inventories are not turning lower yet,” said Stefan Graber, an analyst at Credit Suisse Group in Singapore.
London Metal Exchange copper for delivery in three months was little changed at $6,170 a metric ton at 10:45 a.m. in Singapore. December delivery copper on the Comex division of the New York Mercantile Exchange lost 0.4 percent to $2.8085 a pound. China’s markets are closed for an eight-day holiday.
China’s manufacturing expanded at the fastest pace in 17 months in September on stimulus spending and this year’s record growth in new loans. The Purchasing Managers’ Index rose to a seasonally adjusted 54.3 from 54.0 in August, the Federation of Logistics and Purchasing said today in an e-mailed statement in Beijing. Still, this is lower than the median estimate of 55 in a Bloomberg News survey of 13 economists. A reading above 50 indicates an expansion.
Global Stockpiles
Stockpiles monitored by London Metal Exchange warehouses rose 0.4 percent to 345,650 tons yesterday. Reserves in Shanghai warehouses fell to 96,719 tons this week, still more than five times the level at the start of the year.
The metal’s losses were limited by the weaker U.S. currency. The dollar index, a weighted measure against six major currencies including the euro and yen, was little changed after dropping the most in a week yesterday.
Among other LME-traded metals, aluminum was little changed at $1,888 a ton, zinc fell 0.2 percent to $1,965 a ton, and lead slid 0.2 percent to $2,280 a ton. Nickel lost 0.5 percent to $17,800 a ton, while tin hadn’t traded as of 10:49 a.m. in Singapore.
To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net
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