Copper falls on news of slower China manufacturing

Copper prices fell Monday, after an investigation showed the manufacturing sector of China has slowed in may, an indication that the pace of growth can be facilitated in the largest economy in world-second.

Copper was also under pressure by lowering Chinese imports and a dollar. He led a parade of falling prices for most products as fears continued to grow on to Europe to solve its debt problems.

China is a huge importer of commodities, copper oil. Investors are concerned the Government's efforts to control inflation could be detrimental to the application.

Index the preliminary HSBC Flash China purchasing managers for may is fallen to 51.1 of 51.8 in April, marking the slower pace of growth in 10 months, Barclays Capital analysts said in a client report.

In addition, copper imports refined China in April dropped from 48 per cent and concentrated imports dropped 23 percent from the previous year, analysts said. Scrap metal imports increased 2 percent from a year ago.

During this time, Italy has been drawn to the debt problems of Europe after Standard & Poor lowered its Outlook Saturday for the country's debt to negative from stable. For this, there is a chance of one to three S & P would downgrade rating of debt of the Italy over the next two years.

Some investors fear that the Italy could adopt the Greece of the Portugal and Ireland on the list of European countries with serious debt problems.

"The line of background here, it is we begin to see concerns or fears of a slowdown in China and of course in Europe, said Dave Meger, vice President of metals traded on the Vision of the financial markets."

In the contracts of metals for July delivery, copper fell 13 cents to settle at $3.9915, a book of money fell 18.3 cents to $34.904 an ounce and Platinum lose $ 13.50 to $ 1,755.90 an ounce. June Palladium settled $3.70 to $731.80 an ounce.

Gold has been one of the few to gain investors seek security. Gold for June delivery rose $6.50 to settle at $1,515.40 an ounce.

Most of the basic products have been affected by a dollar stronger. Products are priced in dollars, therefore, stronger dollar means that they become more expensive for buyers using other currencies.

In other exchanges, the price of oil settled 2.4% on the current concerns about Chinese demand.

Platts, the arm of energy information from McGraw-Hill Cos., said Monday China consumed 9.37 million barrels per day in April compared to 8.3% in the same period last year. Total decreased the average growth of 10 percent in the first quarter of this year.

Benchmark crude for July delivery fell from $2.40 to settle at $97 US per barrel on the New York Mercantile Exchange.

In the other Nymex contracts for June, heating oil dropped to 7.12 cents to settle at $2.8471 per gallon, gasoline is 0.23% $2.9381 per gallon and natural gas gained 10.3 cents to $4.393 per 1,000 cubic feet.

Grains and beans fell.

In the contracts for the delivery of July wheat fell 3.5 cents to settle at $8.03 per bushel, corn fell 5.5 cents to $7.54 a bushel and soy fell 6.5 cents to $13.7375 a bushel.