Sept. 12 (Bloomberg) -- Copper fell to the lowest level in a week as investors awaited the outcome of the U.S. Federal Reserve’s meeting next week. Nickel and tin dropped.
Copper for delivery in three months on the London Metal Exchange declined as much as 0.9 percent to $7,106 a metric ton, the lowest price since Sept. 5, and was at $7,114 by 3:33 p.m. in Shanghai. The metal has fallen 10 percent this year.
The Fed will decide to cut its $85 billion in monthly bond purchases this month, according to 65 percent of economists surveyed by Bloomberg from Aug. 9-13. The Federal Open Market Committee holds a two-day meeting on Sept. 17-18.
“The market will remain volatile until the Fed decision comes next week,” said Xiong Dabiao, an analyst at Minmetals Futures Co. in Shanghai. “Since the odds are pretty fair that the Fed will taper off its stimulus, investors are hesitant to raise their bets on China’s recovery.”
Copper earlier rose as much as 0.2 percent amid signs of an economic recovery in China, the world’s biggest metal consumer. Bank of America Merrill Lynch today raised its 2013 growth forecast for China to 7.7 percent from 7.6 percent. A Chinese manufacturing gauge rose to a 16-month high in August.
Copper for delivery in December declined 1.2 percent to close at 51,410 yuan ($8,402) a ton on the Shanghai Futures Exchange. Metal for delivery in December fell 0.6 percent to $3.2365 a pound on the Comex in New York.
On the LME, aluminum, lead and zinc also decreased.
--Alfred Cang. Editors: Sungwoo Park, Ovais Subhani