Copper futures fell to a seven-week low after the recovery in the euro area’s biggest economies stalled and China’s production of the metal rose to the highest since November.
German gross domestic product shrank more than economists forecast last quarter, while the French economy stagnated, data showed today. Copper output in China rose 1.8 percent to 634,000 metric tons in July, official statistics showed. Industrial production in the nation trailed analyst estimates last month, the government said yesterday. The Asian country is the world’s biggest consumer of the metal, followed by the U.S. and Germany.
“Base metals have reacted negatively to the data, building on the weak sentiment after yesterday’s slightly softer Chinese industrial-production data,” Steve Scacalossi, the head of global metals sales at TD Securities in New York, said in a note. The data from Europe “reflected a weaker economic outlook,” he said.
Copper futures for December delivery declined 0.6 percent to settle at $3.1125 a pound at 1:16 p.m. on the Comex in New York. Earlier, the price touched $3.1065, the lowest for a most-active contract since June 23.
On the London Metal Exchange, copper for delivery in three months fell 0.9 percent to $6,825 a ton ($3.10 a pound). Lead, aluminum and zinc dropped, while nickel and tin rose.