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Copper and Aluminum Drop as Gains Peter Out Before China Break - BLOOMBERG
(Bloomberg) -- Copper and aluminum fell as a rally, which had been buttressed by Chinese buying, stalled with the country nearing a major holiday.
Three-month futures for the red metal dropped toward $13,000 a ton, after gaining more than 2% over the prior two sessions. Chinese copper buyers are expected to extend their break over the Lunar New Year holiday — which starts next week — as still-lofty prices chill industrial demand for the commodity.
Copper had been rising — hitting a record in late January — as investors piled into commodities amid doubts over the US dollar, part of a shift away from currencies and sovereign bonds. The rally saw a further boost thanks to a wave of buying from Chinese investors, who are now easing off.
Copper dropped 0.6% to $13,098 a ton on the London Metal Exchange at 3:52 p.m. in Singapore. Prices had hit a record above $14,500 on Jan. 29. Aluminum was down 0.9% at $3,099 a ton.
