Lead to tin fall to lowest in more than a year on demand concern
By Bloomberg
Lead and tin fell in London to the lowest levels in more than a year as industrial metals slumped amid concern an economic slowdown will sap demand at the same time that supply expands.
U.S. wholesale prices unexpectedly slid for the first time in a year in September and Chinese factory-gate prices dropped for a record-tying 31st month, data showed yesterday. Rio Tinto Group, which has copper operations from Chile to Mongolia, said yesterday its production of the metal from mines this year will be about 5 percent higher than previously estimated.
"Concerns over weak demand continue to pervade, with weakness likely to persist until signs that the supply side is reacting," analysts at Australia & New Zealand Banking Group Ltd. said in an e-mailed note. The U.S. and Chinese figures were "sparking demand concerns," they said.
Lead for delivery in three months dropped 1.9 percent to $1,971 a metric ton by 1:05 p.m. on the London Metal Exchange after earlier reaching the lowest price since May 2013. Tin fell 1.5 percent to $19,310 a ton after touching the lowest since July 2013. An index of the six main metals traded on the LME declined the most in five weeks yesterday.
Growth in Chinese production of electric bicycles, which contain lead in their batteries, may slow to 2 percent this year from 4.7 percent in 2013, according to London-based researcher CRU Group. Stockpiles of the metal tracked by the LME were little changed at 225,550 tons, daily data showed.
Copper futures for delivery in December fell 1.6 percent to $2.9615 a pound on the Comex in New York. The metal for delivery in three months on the LME slid 1.3 percent to $6,554 a ton.
Rio Tinto said it expects to produce about 615,000 tons of copper from mines this year, against 585,000 tons projected previously. LME inventories of the metal rose 2 percent to 157,675 tons, the highest since July, and orders to remove copper from warehouses gained 0.3 percent to 26,375 tons.
Zinc retreated as much as 3.8 percent in London today and dropped 5.8 percent in two sessions, the most since October 2011. Aluminum and nickel fell.