Copper Falls to Eight-Month Low on Concern Economies to Falter -Shanghai Metals Market

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Copper Falls to Eight-Month Low on Concern Economies to Falter

Industry News 08:56:47AM Jun 08, 2010 Source:SMM

June 7 (Bloomberg) -- Copper prices tumbled to an eight- month low on concern that slowing economic growth will curb demand for metal used in homes, cars and appliances.

Group of 20 finance chiefs, meeting in South Korea, said the global rebound faces "significant challenges." Economists have begun to lower their growth forecasts for the first time since the recovery began. Copper has plunged 25 percent from a 20-month high in April, sending the metal into a bear market.

"Copper is still suffering from the reality of a slowdown," said Frank McGhee, the head metals dealer at Integrated Brokerage LLC in Chicago. "These concerns will keep a lid on any rally."

Copper futures for July delivery fell 5.35 cents, or 1.9 percent, to $2.766 a pound on the Comex in New York, after touching $2.72, the lowest level for a most-active contract since Oct. 5. The metal declined for a sixth straight session, the longest slump since early December.

"The pace of the global economic recovery is slowing," said Eliane Tanner, an analyst at Credit Suisse Group AG in Zurich. "Sentiment in the base-metals sector is quite negative due to lower equity markets."

China, the world's biggest copper consumer, has moved to cool its real-estate market, and Europe faces a mounting sovereign-debt crisis. Last week, the metal tumbled 9.2 percent, the most since December 2008.

"There could be further downward pressure on the copper price," Jeremy Cave, an analyst at MF Global Ltd. in London, said in a report. "Over 40 percent of copper is used in construction, so the relationship with the Chinese property market is clear."

Copper for delivery in three months dropped 2.9 percent to $6,101 a metric ton ($2.77 a pound) on the London Metal Exchange.

Aluminum, lead, tin and zinc also fell. Nickel rose.
 

Key Words:  base metal  copper Cu  copper price 

Copper Falls to Eight-Month Low on Concern Economies to Falter

Industry News 08:56:47AM Jun 08, 2010 Source:SMM

June 7 (Bloomberg) -- Copper prices tumbled to an eight- month low on concern that slowing economic growth will curb demand for metal used in homes, cars and appliances.

Group of 20 finance chiefs, meeting in South Korea, said the global rebound faces "significant challenges." Economists have begun to lower their growth forecasts for the first time since the recovery began. Copper has plunged 25 percent from a 20-month high in April, sending the metal into a bear market.

"Copper is still suffering from the reality of a slowdown," said Frank McGhee, the head metals dealer at Integrated Brokerage LLC in Chicago. "These concerns will keep a lid on any rally."

Copper futures for July delivery fell 5.35 cents, or 1.9 percent, to $2.766 a pound on the Comex in New York, after touching $2.72, the lowest level for a most-active contract since Oct. 5. The metal declined for a sixth straight session, the longest slump since early December.

"The pace of the global economic recovery is slowing," said Eliane Tanner, an analyst at Credit Suisse Group AG in Zurich. "Sentiment in the base-metals sector is quite negative due to lower equity markets."

China, the world's biggest copper consumer, has moved to cool its real-estate market, and Europe faces a mounting sovereign-debt crisis. Last week, the metal tumbled 9.2 percent, the most since December 2008.

"There could be further downward pressure on the copper price," Jeremy Cave, an analyst at MF Global Ltd. in London, said in a report. "Over 40 percent of copper is used in construction, so the relationship with the Chinese property market is clear."

Copper for delivery in three months dropped 2.9 percent to $6,101 a metric ton ($2.77 a pound) on the London Metal Exchange.

Aluminum, lead, tin and zinc also fell. Nickel rose.
 

Key Words:  base metal  copper Cu  copper price