Oct. 22 (Bloomberg) -- Copper prices tumbled to the lowest in almost three years as a global economic slump reduces consumption of the metal used in pipes and wires.

Equities slid in the U.S., Asia and Europe, and commodities fell on heightening concern that the world's economy has tilted into a recession. Copper has plunged 13 percent this week. Global output outpaced demand by 65,000 metric tons in July, the International Copper Study Group said on Oct. 20.

``Across the board, every area you look at is weak, and copper is not going to be immune from that,'' said William O'Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey. ``It all relates back to the global credit crisis and the prospect of a global recession. I don't see any reason to come in and buy copper or any commodity now.''

Copper futures for December delivery fell 12.15 cents, or 6.1 percent, to $1.8855 a pound at 11:36 a.m. on the Comex division of the New York Mercantile Exchange. Earlier, the price touched $1.851, the lowest for a most-active contract since Nov. 23, 2005.

The metal has dropped 35 percent in October, heading for the biggest monthly drop since at least 1989, when the data begins.

``Copper has just gotten hammered and it doesn't show any signs of abating,'' O'Neill said. The metal could drop to as low as $1.75 before the end of the year, he said.

`Enveloped in Fear'

Traders ``the world over are enveloped in fear of the economy,'' Alex Heath, the London-based head of industrial- metals trading at RBC Capital Markets, said in a report. ``Fear will hold you back.''

Copper has plummeted as much as 57 percent from a record $4.2605 on May 5. Slowing economies in China and the U.S., the world's two biggest consumers of the metal, will keep driving down prices, Walter `Bucky' Hellwig, who manages $30 billion at Morgan Asset Management in Birmingham, Alabama, said yesterday.

``The whole commodity story is tied to global growth and as long as the perception is out there that the world economy is going to decline, it will be an uphill struggle for copper and all commodities,'' Hellwig said.

BHP Billiton Ltd., the world's largest mining company, said today that ``uncertainty'' about Chinese commodity demand will persist after the country grew at the slowest pace in five years last quarter. Freeport-McMoRan Copper & Gold Inc. said yesterday it plans to delay some projects to increase production until market conditions improve.

A stronger U.S. currency is also weighing on copper, Heath of RBC said. Commodities, mostly traded in dollars, usually move in the opposite direction of the currency as traders use raw materials to hedge against inflation.

The dollar gained as much as 2.3 percent today against a basket of six major currencies, reaching the highest since Nov. 6, 2006.

On the London Metal Exchange, copper for delivery in three months dropped $323, or 7.2 percent, to $4,175 a metric ton ($1.89 a pound).

To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net.

Last Updated: October 22, 2008 11:38 EDT