Copper Slips to Lowest in Five Weeks on Europe Growth ConcernsLuzi Ann Javier
Copper fell to the lowest since June amid signs that Europe’s economic recovery may falter, curbing demand for industrial metals.
Italy unexpectedly returned to recession and factory orders dropped the most since 2011 in Germany, the world’s third-largest copper user. The dollar rose to the highest in almost nine months against the euro, while the Bloomberg Commodity Industrial Metals Index touched the lowest since July 18.
“Slowing consumption is the concern because the euro-zone is just not growing at the rates that they need to be growing,” Michael Smith, the president of T&K Futures & Options Inc. in Port St. Lucie, said in a telephone interview. “Anytime the dollar is strengthening, it will be push commodities down, because they’re dollar-denominated.”
Copper futures for delivery in September slipped 1.2 percent to settle at $3.166 a pound at 1:09 p.m. on the Comex in New York, after touching $3.157, the lowest since June 26.
On the London Metal Exchange, copper for delivery in three months declined 1.2 percent to $6,970 a metric ton ($3.16 a pound).
Orders to remove the metal from warehouses tracked by the LME fell 5.4 percent to 29,100 tons, the lowest since July 4.
Zinc and tin fell in London. Lead, nickel and aluminum advanced.