BLBG:Copper Declines as Deepening European Woes Erode Demand Outlook for Metal
Copper fell for the second straight day on concern that Europe’s debt crisis is deepening, eroding prospects for the economy and metal demand.
European industrial orders rose less than forecast in October from the previous month, regional statistics showed. The euro (EURUSD) dropped to the lowest in almost 16 months against the dollar after French borrowing costs rose at a bond sale.
“We are experiencing more euro-sourced angst, pressuring metals and energy in the process,” Edward Meir, an analyst at INTL FCStone Inc. in New York, said in a report.
Copper futures for March delivery declined 0.2 percent to close at $3.4265 a pound at 1:13 p.m. on the Comex in New York. Yesterday, the most-active contract slumped 2.7 percent, the most in three weeks, amid signs of faltering manufacturing and service industries in Europe.
Service industries in the U.S., the world’s second-largest copper user, expanded less than forecast in December, indicating improvement in the economy may be sluggish. China is the top metal buyer.
On the London Metal Exchange, copper for delivery in three months was unchanged at $7,540 a metric ton ($3.42 a pound).
Lead, zinc, aluminum and nickel fell in London. Tin climbed.
To contact the reporter on this story: Yi Tian in New York at ytian8@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
