Copper Reaches One-Week Low on Concern About Outlook for Demand
Copper reached a one-week low in London as reports of slumping prices, reduced industrial production and higher unemployment from Germany to Australia fanned concern about the outlook for demand.
Wholesale prices dropped the most since 2009 last month in Germany, the world’s third-biggest copper consumer, the nation’s statistics office said today. Industrial output unexpectedly fell in Italy, the third-largest euro-area economy. The Australian dollar weakened after the nation’s jobless rate touched the highest level in four years.
“The Aussie dollar selloff has influenced” metals prices, said Andrew Silver, a broker at Triland Metals Ltd. in London. “It’s a thin market.”
Copper for delivery in three months declined 1 percent to $7,097 a metric ton by 10:02 a.m. on the London Metal Exchange after reaching $7,091.25, the lowest since Sept. 5. Copper for delivery in December fell 0.9 percent to $3.2265 a pound on the Comex in New York on trading volume that was 22 percent below the average of the past 100 days for the time of day, data compiled by Bloomberg showed.
Prices are set to drop for a third week in four before the Federal Reserve’s policy-making committee meets next week. The central bank will reduce monthly bond-buying aimed at stoking the economy in the U.S., the second-biggest copper user after China, by $10 billion to $75 billion at the Sept. 17-18 meeting, economists said in a Bloomberg survey last week.
Copper stockpiles monitored by the LME declined for a sixth session to 579,750 tons, daily bourse data showed. Orders to remove the metal from warehouses, or canceled warrants, dropped 1.9 percent to 281,525 tons. Zinc canceled warrants jumped 3.1 percent, the most since Aug. 23, to 607,500 tons on gains in New Orleans and Antwerp, Belgium.
Lead reached a five-week low in London and zinc touched the lowest level in a week. Aluminum, nickel and tin slid.
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