U.S. copper futures fell more than 2 percent in early business on Wednesday, dragged down by fears of a deepening global recession and persistent supply builds that underscore the metal's dismal state of demand.
For detailed report on global copper markets, click on [MET/L]
* Copper for March delivery HGH9 was trading down 3.40 cents, or 2.26 percent, at $1.4705 a lb by 10:15 a.m. EST (1515 GMT) on the New York Mercantile Exchange's COMEX division.
* The morning range from $1.4615 to $1.5175.
* Initial support in March seen at $1.40 a lb, followed by the December low at $1.2550, a level last seen in October 2004. Resistance eyed at around $1.60.
* COMEX estimated futures volume at 4,284 lots by 9 a.m.
* Worrisome demand outlook highlighted by steady inflows of material into global exchange-monitored warehouses.
* London Metal Exchange copper stocks rose by 8,375 tonnes to 417,475 tonnes, their highest level since January 2004.
* COMEX copper stocks increased 240 short tons to 36,960 short tons as of Tuesday.
* Copper's weaker demand outlook reflected in growing surplus of the metal.
* Global copper market had a surplus of 286,000 tonnes in the first 11 months of 2008, compared with a 201,000-tonne deficit in the same period in 2007 - the World Bureau of Metal Statistics. [ID:nLL201967]
* International Copper Study Group reported a global market surplus of 159,000 tonnes between January and October last year, compared with a surplus of 119,000 tonnes in the same period of 2007. [ID:nLK592528]
* Market sentiment hit by news BHP Billiton (BLT.L), the world's biggest miner, will slash 6,000 jobs due to the global recession.
* BHP will close its giant Ravensthorpe nickel mine in Australia, writing off $1.6 billion, as it battles a collapse in commodity prices. [nSYD409818]
* Edward Meir, metals analyst with MF Global, believed most commodity markets will be held hostage by the fate of the U.S. stock market and, in particular, the outlook for banking stocks.
