Copper fell in London on signs that factory demand will slow in China, the world’s largest consumer of the industrial metal.

The purchasing managers’ index from the China Federation of Logistics and Purchasing fell to 51.1 for August from 51.7 in July. Economists surveyed by Bloomberg projected 51.2. China’s copper output rose to a six-month high in July and Goldman Sachs Group Inc. forecasts more smelting capacity in the second half, curbing imports of the refined metal. Prices fell 5.7 percent this year.

“If they export the refined copper from imported concentrate, it would be a big pressure to the LME,” Richard Fu, director for Asian commodity trading at Newedge Group SA in London, said by e-mail today. “The Chinese August manufacturing PMI announced earlier today is marginally lower than expected.”

Copper for delivery in three months dropped 0.6 percent to $6,942.50 a metric ton by 10:19 a.m. on the London Metal Exchange. Futures for December delivery fell 0.3 percent to $3.15 a pound on the Comex in New York. Floor trading in New York is closed for Labor Day.

Aluminum and nickel advanced while lead and tin declined. Aluminum Corp. of China Ltd., the nation’s largest aluminum producer, suspended its Xinjiang project because of high costs to ship alumina, a semi-finished product used to refine the metal, Helen Lau, commodities analyst at UOB Kay Hian Ltd. in Hong Kong, said, citing the company’s conference call with investors on Aug. 29.

Source: Bloomberg