RTRS: US copper sinks at open on grim economic outlook
U.S. copper futures plunged more than 5 percent Wednesday morning after a sharp build in London warehouse stocks and grim U.S. December retail sales data reinforced concerns about demand in a slowing economy.
For detailed report on global copper markets, click on [MET/L]
* Copper for March delivery HGH9 was trading down 6.30 cents, or 4 percent, at $1.4840 a lb by 10:20 a.m. EST (1520 GMT) on the New York Mercantile Exchange's COMEX division.
* The morning range from $1.4585 to $1.5450.
* COMEX estimated futures volume at 5,507 lots by 9 a.m.
* Copper under renewed selling pressure from concerns about weakened end-user consumption due to a slowing global economy - analysts.
* German gross domestic product (GDP) growth slowed to 1.3 percent last year, the weakest performance since 2005 - preliminary data from the Federal Statistics Office. [ID:nLE375181]
* Copper bearish morning momentum picked up after data showed sales at U.S. retailers fell 2.7 percent in December. [ID:nSP382905]
* "The economy is staring at a very steep, downward trajectory. This shows a very sharp falling in household wealth and job creation. This shows a shock in consumer confidence," said Jim Demasi, chief fixed-income strategist at Stifel Nicolaus & Co.
* Copper's indecisive price action indicative of a confused micro and macro outlook - MF Global metals analyst Edward Meir.
* "On the one hand, prices are attempting to stabilize into a trading range given the steep production cuts and amidst hope that massive stimulus programs being unleashed around the world kick-start demand.
* "On the other hand, LME stock levels continue to increase, telling us that producers are still not slashing production fast enough to get ahead of imploding demand."
* London Metal Exchange warehouse stocks surged 7,300 tonnes on Wednesday to a five-year high at 382,150 tonnes.
* COMEX copper stocks rose by 43 short tons to 35,300 short tons as of Tuesday.
* Chilean copper miner Antofagasta Plc (ANTO.L) will close its small Lince open pit mine because it is not viable due to falling metal prices. [ID:nLE193215]
* Japan's Mitsubishi Materials Corp (5711.T) will cut copper production by 10 percent from February as demand slumps amid a severe economic downturn. [ID:nT135361]
