Panic sales push copper to 1-week low

Print this page Posted on : 06-26-2007 by recycleinme.com

Copper prices slid to one-week lows on Monday as jittery investors sold on worries about global economic slowdown and falling demand, while lead held firm near record highs on supply fears.

Lower prices of copper, used extensively in power and construction, also weighed on London-listed miners such as Rio Tinto, BHP Billiton, Xstrata and Kazakhmys, all down between 0.3 and 1.5 per cent.

Copper futures at 0949 GMT were at $7,320 / 7,335 a tonne on the London Metal Exchange, down from $7.435 on Friday, but up from an earlier $7,312 a tonne, the lowest since June 14.

record high Chinese imports earlier this year have raised fears of a glut of material finding its way out of China and into the export market, traders said.

LOOMING DELAYS

Rising copper inventories in LME warehouses on Monday-up 1,200 tonnes to 119,025 tonnes – also weighed on prices. But analysts say stocks are still ar critically low levels and account for less than three days global consumption. But the general trend in stocks is still down.

“With stocks continuing to fall to levels not seen since October of last year …. Copper is likely to find support at the current level while the risk of production delays looms,’ Deutsche Bank said in a research note. Lead for three-month delivery on the London Metal Exchange was a touch higher at $2,550 / 2,570 a tonne from Friday’s last quote at $2,540 / 2,541. Earlier it traded at $2,560, a record high set on Friday.

Source : Business Line