Copper prices down on speculation China may sell

Copper prices dropped for the first time in five days on rumors that China’s State Reserve Bureau (SRB) will start offloading portions of its stockpiles to take advantage of a four-month high in prices, Bloomberg reported. The three-month delivery contract lost 1.4% to US$7,601.25 per metric ton on the London Metals Exchange, down from a high of US$7,750 per ton on September 3, its highest price since April. Copper also declined on the Shanghai Futures Exchange by 1.7% to US$8,766 per ton. The SRB bought 235,000 tons of copper last year, but analyst Wen Jinghai of Bohai Futures said that a major sell-off is unlikely. "The bureau isn’t looking to profit from market moves. If they really do sell part of the stockpile, it will only be a little bit at a time so as not to cause disruptions in the market," he said.