Copper Heads for Weekly Loss as Euro-Area Recession Cuts Demand
Copper is poised for the first weekly decline in three as the euro-area recession deepened more than economists forecast, weakening demand for metals.
Metal for delivery in three months was little changed at $8,250 a metric ton on the the London Metal Exchange at 12:01 p.m. in Seoul. The contract is down 0.5 percent this week. Futures for delivery in May advanced 0.2 percent to $3.76 a pound on the Comex in New York.
Gross domestic product in the euro region fell 0.6 percent in the fourth quarter from the previous three months, the worst performance since the first quarter of 2009. It exceeded the 0.4 percent median forecast of economists in a Bloomberg survey. Europe’s 17-nation currency yesterday depreciated 0.7 percent against the dollar.
“GDP in the Euro-zone came out weaker, droving the euro lower and weighing on metals prices,” Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co., said by phone from Seoul. “We are not completely sure yet if Chinese demand will actually resume after the holiday.”
Financial markets in China are closed this week for the Lunar New Year. The Asian nation is the world’s biggest consumer of copper.
On the LME, aluminum was little changed after yesterday advancing to a six-week high on rising global auto sales. Zinc, nickel and lead rose.
To contact the reporter on this story: Sungwoo Park in Seoul at firstname.lastname@example.org
To contact the editor responsible for this story: Brett Miller at email@example.com