Copper slips 1% on weak demand concerns

Print this page Posted on : 12-29-2007 by recycleinme.com

London Metal Exchange (LME) copper futures fell more than 1 per cent on Friday on concerns about falling demand after weak US economic data released the previous day.

Benchmark copper for delivery in three months on the London Metal Exchange was down $80 at $6,800/$6,820 per tonne at 1115 GMT.

Copper has lost more than 12 per cent since the start of November as investors fear the global credit crunch and slowing US growth may hit demand for the metal, which is commonly used in house building and electrical items.

SELLING AHEAD OF HOLIDAYS

The Shanghai Futures Exchange will close from Dec.29 to Jan.1 for the year-end holiday. Trading will resume on Jan.2.

Uncertainties on the global financial markets have pushed Chinese investors to lighten holdings and adopt a wait-and-see position. Copper inventories monitored by the Shanghia exchange fell 125 tonnes, or half a per cent, to 25,597 tonnes in the week ended on Thursday, the seventh weekly drop in a row.

Aluminium was up $12 at $2,412/2,424 per tonne, while zinc was down $65 at $2,405/2,425 per tonne.

Lead was down $64 at $2555/2575 per tonne, tin was up $50 at $16,350/16,450 per tonne and nickel was down $150 at $26,850/27,050 per tonne.

Source : Business Line