DJ Copper Slips on Demand Outlook
By Ira Iosebashvili
Copper prices edged lower Monday, as a shaky global economy raised concerns about demand for the industrial metal.
Copper for July delivery, the most actively traded contract, closed down 0.1% at $2.5670 a pound on the Comex division of the New York Mercantile Exchange.
Prices are down 12% from their May highs, as investors worry about growth in China and the U.S., the two largest consumers of the industrial metal, respectively. A series of government-initiated stimulus programs have failed to steady the economy of China, which accounts for 40% of the world’s copper consumption. A recovery in the U.S., meanwhile, has been less dramatic than expected. Copper is heavily used in manufacturing and construction, making it sensitive to the countries’ economic fortunes.
“The copper price is a reflection of investors’ pessimism regarding the global economy,” said George Gero, managing director at RBC Capital Markets.
Settlements (Ranges include pit and electronic trading): June $2.5880, down 0.40 cent; Range $2.5830-$2.5930 July $2.5670, down 0.2 cent; Range $2.5595-$2.5810