http://www.bloomberg.com/news/2014-04-0 ... ficit.htmlCopper Futures Fall in New York Amid China Demand ConcernCopper headed for the biggest loss in two weeks as increased government scrutiny of corporate debt in China, the biggest user, fueled concern that defaults by manufacturers will curb demand.
The National Development and Reform Commission began a special investigation last month into how some companies use bond proceeds, two people with direct knowledge of the matter said today. Copper futures posted the biggest loss in more than two years on March 7 after China’s first onshore default dimmed demand prospects.
“There’s a lot of concern about the weakness in China,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in an interview. “The risk of more defaults is really a huge factor” pushing prices lower, he said.
Copper futures for delivery in May lost 1.1 percent to $3.0175 a pound at 11:11 a.m. on the Comex in New York. A close at that price will mark the biggest decline since March 26.
On the London Metal Exchange, copper for delivery in three months fell 1.1 percent to $6,600 a metric ton ($2.99 a pound).
The metal has dropped 10 percent this year, the worst performance of the main six metals on the LME. Supply will exceed demand this year by the most since 2001, according to the International Copper Study Group in Lisbon.