Hong Kong - Copper slid a second day, shrugging off China’s bid to boost growth with a third interest rate cut in six months in the world’s largest consumer of the metal.
Copper entered a bull market last week and rose to the highest since December amid speculation China’s policy makers would add stimulus and on signs that supply is tightening. While prices slipped 0.6 percent in the last two days, the metal has rallied 18 percent from a five-year low in January.
“With the slowing data, the market is just going to stand back,” said David Lennox, a resource analyst at Fat Prophets in Sydney. “The import numbers were quite weak. Any rate cut now won’t start to impact demand until beyond next month.”
The People’s Bank of China cut the one-year lending rate 0.25 percentage points to 5.1 percent. The move, announced Sunday and effective Monday, came after the nation’s imports and exports both fell in April.
Copper for delivery in three months declined 0.4 percent to $6,360.50 a ton ($2.89 a pound) on the London Metal Exchange at 1.55pm in Hong Kong. In New York, July futures slid 0.6 percent to $2.9025 a pound, while the metal for the same month in Shanghai slipped 0.6 percent to 45,670 yuan ($7,355) a ton.