Copper, other metals down on rising inventories

Copper prices fell substantially Monday as new data showed that manufacturing in China contracted in July for the first time in at least three years and after London Metal Exchange stockpiles added 1,550 tonnes on the session to 146,200 tonnes.

The rising stockpiles reflect declining demand for the metal globally.

September copper was down 14 cents to $3.44 per pound in New York while three-month copper in London dropped $290, or 3.7 percent, to $7,610 per tonne.

Rising inventories in LME warehouses also sent prices for several other industrial metals lower on the session.

Aluminium prices fell $52 to $2,882 per tonne as inventories rose to their highest level since May 2004, while lead was down $126 to $2,000 per tonne on stockpiles that are at a nearly two-year peak and tin prices fell $900 to $20,600 per tonne as inventories jumped by 120 tonnes during the day.

Additionally, zinc was down $71 to $1,769 per tonne and nickel declined $275 to $18,025 per tonne.

Precious metals prices were also lower, following a drop in crude oil prices that reduced the demand for metals as a safe haven against inflation.

December gold was down $9.50 to $908 per troy ounce in New York, while September silver fell 37 cents to $17.15 per troy ounce and October platinum plummeted $90.30 to $1,565 per troy ounce.