Copper, Aluminum, Zinc Drop as China, U.S. Growth Moderate

China's economic growth eased to 10.3 percent in the second quarter and industrial production cooled more than forecast in June. The pace compares with an 11.9 percent gain in January- March from a year earlier. Inflation cooled to 2.9 percent in June, the statistics bureau said in Beijing today.

"The risk of a slowdown remains," said Jia Zheng, an analyst at Orient Securities Futures Co., from Shanghai today.

China's copper production rose 26.3 percent to 422,000 tons in June, from a year earlier, and zinc output added 15.8 percent to 425,000 tons, separate data released today showed. Copper output was a record, according to Jia.

"Gains in domestic production offset declines in imports to a certain extent, showing demand is still robust," she said.

Metals fell also as the Federal Reserve trimmed its growth forecast and U.S. retail sales declined more than predicted. The U.S. is the world's second largest consumer of copper used in construction and home appliances.

"A slightly weaker-than-expected U.S. retail trade report softened the macro backdrop," Mark Pervan, an analyst at ANZ Banking Group Ltd. said in an e-mailed report today.

"Reports China's top steel producers had cut August contract steel prices dulled the mood, particularly for steel making by-products, nickel and zinc," Pervan wrote in the report.

Baoshan Iron & Steel Co., the biggest publicly traded Chinese steelmaker, cut prices for a second month amid weakening demand, while Angang Steel Co. is considering cuts.

Copper and zinc for October delivery in Shanghai were little changed at 52,870 yuan ($7,804) a ton and 15,125 yuan a ton, respectively. Nickel in London lost 0.2 percent to $19,360 a ton, lead dropped 1 percent to $1,810 a ton and tin advanced 0.4 percent to $18,045 a ton as of 3:58 p.m. in Shanghai.