Copper drops first time in 5 days as metals fall on China PMI
Post Date: 26 Jul 2013 Viewed: 358
Bloomberg reported that copper declined for the first time in 5 days after a preliminary reading of manufacturing in China, the biggest user, fell below expectations. Aluminum, lead, nickel and zinc also dropped.
Copper for delivery in three months fell as much as 0.8% to USD 6,986 per tonne on the London Metal Exchange and was at USD 6,989.50 in Shanghai. Aluminum dropped 0.8% to USD 1,830.75 per tonne while nickel slid 0.7% to USD 14,025 per tonne.
China’s manufacturing weakened further in July, signaling the worst of the nation’s slowdown has yet to be reached. The reading of 47.7 for an index released today by HSBC Holdings Plc and Markit Economics was less than estimated and if confirmed in the final report August 1 would be the lowest in 11 months. Readings below 50 indicate contraction.
Mr He Shan an analyst at Galaxy Futures Co. in Beijing said that “This number will raise further concerns over Chinese demand. The H2 could pose some real challenges.”