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Markets

Copper drops to 7-week low on China tightening

(China Daily)
Updated: 2010-05-05 10:39
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MANILA - London copper fell to its weakest in seven weeks on Tuesday and Shanghai copper hit a two-month low on fears China may tighten monetary policy further and cause demand to thin from the world's top consumer of many base metals.

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China on Sunday raised the bank reserve requirement ratio by 50 basis points, its third increase of that magnitude this year as the country continues to siphon off excess cash to cool its red-hot economy.

"There is concern that policy tightening in China will mean that economic growth and, therefore, demand for metals in China would be less than it what otherwise would have been," said David Moore, commodity strategist at Commonwealth Bank of Australia.

Reuters