Copper Futures Fall to Four-Week Low as U.S. Housing Data Signals Slowdown
Copper fell to a four-week low as unexpectedly weak reports on U.S. durable goods and housing added to evidence that the economic recovery is faltering.
Orders for durable goods in the U.S., the world’s largest copper consumer after China, increased less than forecast, while sales of new houses dropped 12 percent to a record low in July. Building accounts for almost half of U.S. copper demand, according to Bank of America Merrill Lynch. Stocks fell worldwide.
“We’re focusing on the U.S., and there’s a concern the economy there might slow down,” said David Wilson, a metals analyst at Societe Generale SA in London.
Copper futures for December delivery fell 3.05 cents, or 0.9 percent, to close at $3.2315 a pound at 1:15 p.m. on the Comex in New York. Earlier, the price reached $3.20, the lowest level for a most-active contract since July 28.
“The metals complex witnessed a further fall today, as negative sentiment as well as technical selling continued,” Alex Heath, the head of London Metal Exchange trading at RBC Capital Markets in London, said in a daily report.
Copper for delivery in three months dropped $36, or 0.5 percent, to $7,101 a metric ton ($3.22 a pound) on the LME. Aluminum, zinc, lead, tin and nickel also declined.
To contact the reporters on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net; Yi Tian in New York at Ytian8@bloomberg.net.
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