Copper on track for second weekly loss

Copper futures slid in American trade for the sixth session out of eight away from the highest since September 16, 2014, even as the dollar index lost ground, following a spate of data from the US, the world's largest economy. 

As of 02:59 GMT, copper futures due on December 15 fell 0.37% to $294.65 a pound from the opening of $295.75, while the dollar index declined 0.48% to 91.68 from the opening of 92.12. 

Earlier US data showed retail sales down 0.2% in August, compared to a 0.3% advance in July, revised downwards from 0.6%, while analysts expected a 0.1% decline. 

Core retail sales slowed down in growth to 0.2% from 0.4%, already revised lower from 0.5%, as analysts expected a 0.5% rise, while the Empire State Manufacturing Index slipped to 24.4 in September from 24.4, passing expectations of 18.2.

US industrial production fell 0.9% in August, compared to a 0.4% rise in July, revised upwards from a 0.2% increase, while analysts expected a 0.1% rise. 

Additionally, the Capacity Utilization Rate fell to 76.1% from 76.9% in July, missing forecasts of 76.8%. 

Otherwise, copper prices are bouncing off three-year highs on track for their second weekly decline in a row, latest report from commodity analysts at Commerzbank said that many experts believe that the copper market is facing a speculative surge on a wide level that's not properly based. 

The report pointed to Chilean state-owned copper mining company Codelco as an example of recent speculation, while noting that the company itself said recently that copper prices are considerably above their reasonable limits, and that gains in recent months were not sustainable, after copper prices rose 24% year-to-date, compared to 15% for gold and 11% for silver. 

Some analysts predicted surpluses in the copper market in the long term, pointing to already existing surpluses that could carry on for two years, especially as Chinese demand slows down. 

Copper prices could tumble in the coming period as Chinese housing sales drop while credit growth in China slows down alongside mining inventories in the world's largest metals consumer.