NEWSCopper Falls in New York as Inventory Gains Signal Oversupply
By Millie Munshi
Aug. 30 (Bloomberg) -- Copper fell in New York as global inventories expanded to the highest level in three months, signaling demand may not be keeping up with supply.
Stockpiles in warehouses monitored by the London Metal Exchange rose 275 metric tons, or 0.2 percent, to 138,925 tons, the most since May 21. Inventories have gained for 11 straight days, the longest increase since January, and have surged 36 percent in the past month. The price of copper is down 1 percent from a year ago.
``There's been a lack of demand and a lack of buying, but enough supplies,'' said Warren Gelman, president of Kataman Metals in St. Louis. ``Business is soft on all the copper fronts.''
Copper futures for December delivery dropped 2.45 cents, or 0.7 percent, to $3.3195 a pound at 9:09 a.m. on the Comex division of the New York Mercantile Exchange. Before today, the metal had gained 16 percent this year.
Copper also fell after a report showed the U.S. economy grew less than forecast in the second quarter. Growth was revised up to a 4 percent annual rate, the Commerce Department said today. The median forecast of 81 economists polled by Bloomberg News was 4.1 percent.
On the London Metal Exchange, copper for delivery in three month fell $40, or 0.5 percent, to $7,330 a metric ton. The metal rose to a record $8,800 a ton in May 2006.
To contact the reporter on the story: Millie Munshi in New York at mmunshi@bloomberg.net .
Last Updated: August 30, 2007 09:11 EDT