Bloomberg News

Copper Drops First Day in Three on Greece, China Growth Concerns

February 22, 2012

Feb. 22 (Bloomberg) -- Copper declined for the first time in three days as the threat of a default in Europe remained even after a second bailout for Greece was approved and data showed manufacturing in China may contract.

Three-month copper fell as much as 0.4 percent to $8,413 a metric ton after rising 0.3 percent earlier. The contract traded little changed at $8,450 by 11:38 a.m. Shanghai time, after climbing 3.4 percent in the past two days. May-delivery copper on the Comex lost 0.3 percent to $3.8345 a pound.

China manufacturing Purchasing Manager Index stood at 49.7 in February, according to preliminary reading from HSBC Holdings Plc and Markit Economics released today. The reading stayed below dividing line of 50 and indicating contraction, and compared with a final reading for January at 48.8. Europe is still struggling to avoid the threat of default as investors warned Greece will soon risk violating the terms of its second bailout in three years.

“China’s flash PMI stayed below 50, and a second bailout package doesn’t mean the problem in Greece has been solved,” Zhang Tianfeng, an analyst at Dongxing Futures Co., said by phone from Shanghai. “There are still a lot of uncertainties regarding the global economic outlook.”

The contract for delivery in May on the Shanghai Futures Exchange gained 0.6 percent to 60,380 yuan ($9,590) a ton.

Anglo American Plc and Xstrata Plc’s Collahuasi copper mine in Chile has been closed after a worker died in an accident, company spokeswoman Bernardita Fernandez said yesterday.

On the LME, aluminum fell 0.3 percent to $2,243 a ton, and lead declined 0.4 percent to $2,104.50 a ton. Zinc rose 0.4 percent to $2,036 a ton, nickel gained 0.5 percent to $20,331 a ton and tin rose 0.7 percent to $24,350 a ton.

--Helen Sun. Editors: Richard Dobson, Jarrett Banks

To contact Bloomberg News staff for this story: Helen Sun in Shanghai at hsun30@bloomberg.net

To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net


Steve Ballmer, Power Forward
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus