28.02.201405:10:48UTC+00Copper approach second monthly lump

Copper traded close to the lowest in more than two months, citing concern on China’s decelerating growth and a weaker yuan may trim demand for the metal in the largest user.

The contract for delivery in three months on the London Metal Exchange plummeted 0.4% to $6,998 per metric ton by 2:06 p.m. in Tokyo after trading between $7,054 and $6,995. The metal reached $6,993.50 yesterday, the smallest intraday level since December 4. The price wiped out 0.9% this month, prolonging a 4% drop in January.

Official report tomorrow may reflect China’s manufacturing stretched this month at the slowest move since June, with a private gauge next week projected to exhibit slowdown. China’s yuan set for the worst month in two decades on speculation the government will widen the currency’s trading band after letting more volatility at a time when progress is slowing in the world’s second largest economy.

Lawmakers will meet next week to decide on main economic policies and growth objectives. A weaker yuan rises import costs for commodities from copper to oil to corn. The metal to be delivered in May on the Shanghai Futures Exchange was slightly changed at 49,200 yuan (or $8,004) per ton. The contract for May delivery on the Comex in New York dropped 0.4% to $3.189 per pound.

On the LME, aluminum went down 0.2%, reducing the largest monthly gain since November 2012. Nickel, lead, and zinc also fell, while tin was somewhat changed.