RTRS: UPDATE 5-Global demand concerns drag copper 9 pct down
* LME copper to hit biggest monthly loss since at least 1970
* European equity markets on course for worst ever month
* Aluminium well off week high of $2,199 a tonne
(Updates with official prices, adds comment, U.S. data)
By Michael Taylor
LONDON, Oct 31 (Reuters) - Copper pulled industrial metals deep into negative territory on Friday, losing 9 percent as concerns over global demand triggered a sell-off across commodities. The bleak economic picture was highlighted by the FTSE 100 .FTSE falling about 1 percent, with European shares on track for their worst month ever. [ID:nLV388920]
Adding to negative sentiment, U.S. consumers cut their monthly spending for the first time in two years during September, evidently bracing for hard times as jobs continue to disappear and credit conditions tighten. [ID:nN30398097]
Copper for three month delivery MCU3 on the London Metal Exchange fell to $3,990 a tonne in official trading rings, from $4,210 at the close on Thursday and compared with a session low at $3,832.
"It's been pretty volatile again today," said one LME trader. "We are heading lower. I'm a bear and have been for a while - copper is overvalued..."
Prices of the metal used in power and construction have fallen more than 50 percent since a record high of $8,940 in July.
Analysts said fears over global demand in the face of a worldwide economic downturn are to blame for the slump in prices.
"(Base metals are) not looking too clever," said Dan Smith, a metals analyst at Standard Chartered. "We are going to see prices remaining under pressure for the time being ... it's a sell-off across all the base metals in response to worries about the demand outlook."
"This tone is going to be with us for a while because people are waiting to get some clarity on the underlying picture. Certainly demand is getting softer," Smith said.
In industry news, Chile's Codelco, the world's largest copper producer, said its copper output fell 8.2 percent in the first nine months of the year, citing a strike by subcontract workers and falling ore grades. [ID:nN30290469]
