Copper Futures Drop in Commodity Slump Paced by Energy
Copper futures fell for the second time in three days as commodities tumbled, spurred by slumping energy prices.
The Standard & Poor’s GSCI Spot Index of 24 raw materials fell as much as 1.4 percent. Crude oil headed for the third straight weekly decline, the longest slump in four months, on signs of ample supplies. Most industrial metals traded in London dropped.
“With oil weakening, it spills over,” Edward Meir, an analyst at FCStone Inc. in New York, said in a telephone interview. “Many of the funds trade in baskets of commodities, and when they see oil falling, they get nervous. Oil is sort of the locomotive because it’s such an important commodity.”
Copper futures for December delivery declined 0.2 percent to settle at $3.778 a pound at 1:21 p.m. on the Comex in New York. The price climbed 0.5 percent this week.
More signs this week of a slowing economy in China, the world’s biggest metal user, may weaken copper, Meir said.
On the London Metal Exchange, copper for delivery in three months fell 0.1 percent to $8,295 a metric ton ($3.76 a pound). Tin, lead, nickel and aluminum dropped, while zinc rose.
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