Copper crashes as metals crumble
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Copper fell 14 per cent to its lowest point since January 2006, while other metals dropped over six per cent on mounting fears of a looming recession. Markets across the globe have plunged as investors and traders have panicked, believing Government and central bank efforts to shore up banks will not be enough to prevent a global recession and financial meltdown. Copper for three-month delivery on the London Metal Exchange fell to a low of $4,570 a tonne, before trading at $4,695 by 1348 GMT. Last week the metal shed 15.4 per cent and prices have almost halved since hitting a high of $8,940 in July.
Prices of the metal used in power and construction have fallen about 45 per cent since a record high of $8,940 in July. Copper is now very close to $4,000, the average cost of production, according to some analysts. Others say average costs are just above $3,000 a tonne. Data showing a 59 per cent surge in copper inventories at warehouses monitored by the Shanghai Futures Exchange also hit sentiment.
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Aluminium hit $2,190, its lowest since December 2005 and was last at $2,230 from $2,307. The metal used in transport and packaging has come under pressure in recent weeks on news of deteriorating car sales data from auto makers. Nickel was at $12,400 from $13,400 at the close on Thursday, lead at $1,480 from $1,660 and zinc at $1,380 from $1,498. Tin fell to $13,351 from Thursday last bid at $14,750.
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Source : Business Line |
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