Copper at a 1-week low

Copper reached a 1-week low after data showed the economies of its three biggest consumers – China, USA and Germany, are slowing down.

JPMorgan Chase & Co. cut its growth estimate this year for China from 8% to 7,6%. Germany also showed negative signs with a worse than expected performance. The Federal Statistics Office said that the leading EU nations GDP rose by 0.1% from the fourth quarter, trailing analysts expectations for a 0.3% expansion. Economists said for Bloomberg that according to a report later today, industrial production should have contracted by 0,2% last month. Copper for delivery in three months slid 1.1% a ton. Inventories monitored by the London Metal Exchange rose to the highest since August 2003.

Frank Lesh, a trader at FuturePath Trading in Chicago, said for Bloomberg: “Every bit of data lately seems to be showing less industrial production, and less manufacturing is going to be a problem for copper. The buyers just aren’t there, and we’re seeing a buildup in inventories.”

This sentiment was backed by Pengjiang “Richard” Fu, director for Asian commodities trading at Newedge Group SA in London, who said for Bloomberg: “The poor GDP figures from Germany and France plus banks’ cut on China GDP growth lent much pressure to the metals market.”