Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Copper Drops to Four-Week Low on U.S. Budget Concern, Euro Debt

Nov. 21 (Bloomberg) -- Copper fell to a four-week low on speculation that U.S. lawmakers will fail to agree on budget cuts and that Europe’s debt crisis will send the region’s economy into a recession.

In the U.S., a bipartisan congressional supercommittee likely will say today it can’t reach agreement on savings, a Democratic aide said. Germany’s Finance Ministry said the country’s expansion has gotten “noticeably slower.” Japan’s exports fell for the first time in three months. The U.S. and Germany are the world’s largest copper consumers after China.

“Headwinds to prices persist across all cyclical metals,” Michael Widmer, the head of metals research at Bank of America Merrill Lynch in London, said today in a report. “Considering ongoing uncertainties about the fiscal health of Europe and the U.S., we believe that these headwinds are unlikely to dissipate in the short run.”

Copper futures for March delivery dropped 3 percent to settle at $3.3195 a pound at 1:18 p.m. on the Comex in New York. Earlier, the price touched $3.2885, the lowest for a most-active contract since Oct. 24. The metal declined 7.7 percent in the previous three weeks.

The world economic situation is “extremely severe,” Chinese Vice Premier Wang Qishan said, according to the official Xinhua News Agency. Wang is certain that a global economic recession triggered by the financial crisis will be long-term, Xinhua reported.

On the London Metal Exchange, copper for delivery in three months fell 2.9 percent to $7,310 metric ton ($3.32 a pound).

Zinc, lead, aluminum and tin fell in London. Nickel rose.

To contact the reporter on this story: Yi Tian in New York at ytian8@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.