Copper set to decline
SINGAPORE - Copper in London may decline for the first time in three days as some investors deemed the biggest gain in two weeks as excessive amid a lack of signs that Chinese demand is picking up.
Three-month copper on the London Metal Exchange (LME) was little changed at $9,606 a ton at 3:37 pm on Thursday in Singapore after losing as much as 0.4 percent in early trade. The metal rose 2.3 percent on Wednesday, the most since March 23.
"Recent price gains have hinged on China's demand picking up and that's not happening yet," Shi Wenzhu, an analyst at Huatai Great Wall Futures Co, said from Shanghai. "Inventories remain high and premiums aren't picking up."
Inventories in LME warehouses have risen 17 percent this year. Copper stockpiles in Shanghai are up 23 percent this year.
Bloomberg News
(China Daily 04/08/2011 page17)
