Copper fell in London on signs that factory demand will slow in China, the world’s largest consumer of the industrial metal.
The purchasing managers’ index from the China Federation of Logistics and Purchasing dropped to 51.1 for August from 51.7 in July. Economists surveyed by Bloomberg projected 51.2. China’s copper output rose to a six-month high in July and Goldman Sachs Group Inc. forecasts more smelting capacity in the second half, curbing imports of the refined metal. Prices declined 5.7 percent this year.
“If they export the refined copper from imported concentrate, it would be a big pressure to the LME,” Richard Fu, director for Asian commodity trading at Newedge Group SA in London, said by e-mail. “The Chinese August manufacturing PMI announced earlier today is marginally lower than expected.”