Shanghai - Copper declined from the biggest four-day rally in almost two years before data that’s forecast to show durable goods orders slowed in the US, the world’s second- biggest consumer of the metal.
Copper fell as much as 0.6 percent after closing at the highest since January 6. Orders for goods meant to last at least three years climbed 0.2 percent in February, compared with 2.8 percent in January, according to a Bloomberg survey before the data due on Wednesday. Manufacturing in China slowed to an 11-month low in March, the preliminary reading of a private Purchasing Managers’ Index showed on Tuesday.
“The metals market is watching the upcoming data from the US,” said Yu Yi, a Beijing-based analyst at SDIC CGOG Futures Company. “Copper lacks demand from the physical market as buying in China is weak.”
Copper for delivery in three months on the London Metal Exchange fell 0.5 percent to $6,114 a metric ton ($2.77 a pound) at 10.33am in Shanghai. The metal rose 0.4 percent to $6,145 a ton on Tuesday, capping a four-day, 8.4 percent rally that was the biggest since May 2013.
Morgan Stanley lowered its 2015 average price forecast for copper to $5,945 a ton, 16 percent lower than its previous estimate, on subdued industrial activity in China, the bank said in a report on Tuesday. China set its economic growth target at about 7 percent for this year, which would be the smallest increase since 1990.
On the Comex in New York, copper for May delivery retreated 0.5 percent to $2.79 a pound, while the metal for the same month in Shanghai fell 0.5 percent to 43,650 yuan ($7,032) a ton.
On the LME, zinc and lead fell, nickel rose and aluminium was little changed. Tin hadn’t traded.Bloomberg