Oct. 28 (Bloomberg) -- Copper dropped before industrial output data from the U.S. and on concern that credit is tightening in China. Lead and zinc fell for the first time in three days.
The contract for copper delivery in three months on the London Metal Exchange fell as much as 0.4 percent to $7,155 a metric ton and traded at $7,180 at 4:12 p.m. in Tokyo. Futures lost 0.8 percent last week and are down 1.7 percent this month. Lead fell 0.4 percent to $2,196 a ton and zinc slid 0.3 percent to $1,949.75 a ton.
The U.S. will report industrial output today that may be unchanged from a month ago and after orders to manufacturers unexpectedly dropped in September and as households were more glum in October for a third consecutive month. China’s one-month Shanghai Interbank Offered rate rose six basis points to 6.4770 percent, the highest since July 1. China’s central bank has refrained from injecting funds into the banking system since Oct. 17,
“Concern about the U.S. economy and China’s credit tightening put downward pressure on metals,” said Chae Un Soo, a metals trader at Korea Exchange Bank Futures Co. in Seoul. Shrinking LME copper stockpiles would limit any further decline in prices, he said.
Metal for delivery in January on the Shanghai Futures Exchange rose 0.7 percent to close at 51,510 yuan ($8,464) a ton. Futures for delivery in December slid 0.1 percent at $3.265 a pound on the Comex in New York.
LME copper stockpiles fell for the 37th straight session to 480,875 tons, exchange data showed Oct. 25.
Aluminum futures and tin climbed, while nickel was little changed.
--With assistance from Alfred Cang in Shanghai. Editor: Brett Miller