Copper eases on profit taking

Print this page Posted on : 11-26-2008 by recycleinme.com

Copper fell 4.5 per cent on profit taking on Tuesday with the focus on stock markets and miner BHP Billiton's abandoned bid for Rio Tinto as the outlook for industrial metals demand looked grim.

London Metal Exchange copper for three month delivery fell 4.5 per cent to a low of $3,580 a tonne before trading at $3,591, down $159, by 1045 GMT, as investors booked profits.

On Monday copper {ndash} often seen as a key gauge of real economic activity {ndash} hit a 10-day high of $3,815 a tonne, up 7.8 per cent, before closing at $3,750.

Prices have slumped almost 60 per cent from a record high of $8,940 in July as demand has fallen and stocks have more than doubled in LME warehouses to a total of 287,225 tonnes.

''We could edge higher for a few weeks but I wouldn't be surprised if we then trade sideways for quite an extended period,'' analyst Mr William Adams at BaseMetals.com said.

Source : Business Line