Copper Falls on Signs of Surplus and Worries Over Demand from China

Three-month copper on the London Metal Exchange fell 1.4 percent or $94.82 to trade at $6,772.75 per tonne on Wednesday, according to Reuters. Investors are concerned about signs of a surplus as well as low anticipated demand from China.

“The market expected that any available metal would disappear into China’s state reserve,” Nic Brown, head of commodities research at Natixis, told Reuters. “But in the last week following state purchases, there has been a drop in premiums for delivery into China. That tells me that the market is not as tight as it was.”

Copper futures for July delivery on New York’s Comex fell 1.66 percent or $0.05 to trade at $3.085 per pound, according to the Binary Tribune.