WSJ:Copper at Eight-Month Low on Weaker Growth, Surplus Fears
By Tatyana Shumsky
NEW YORK--Copper prices settled at an eight month low Wednesday, as mounting concerns about slowing global economic growth and rising stockpiles of excess copper weighed on investor appetite for the metal.
The most actively traded contract, for May delivery, fell 4.45 cents, or 1.4%, to settle at $3.3330 a pound on the Comex division of the New York Mercantile Exchange.
This was the lowest settlement price since futures slumped to $3.2905 on Aug. 2.
Copper prices have been under pressure for months, as disappointing economic data from across the world stoked fears of weaker demand.
There are signs of struggle in the U.S. economic recovery after data showed U.S. private sector jobs rose less than expected in March and the non-manufacturing sector slowed its expansion in March from a month earlier.
Earlier in the week, manufacturing activity in Europe was shown to continue its contraction while China's manufacturing sector expanded at a slower than previously thought pace.
"There's more worries about China. Should the Chinese economy slow down, that would be a huge negative for copper prices," said Matt Zeman, head of trading with Kingsview Financial.
China is the world's largest consumer of copper, while Europe as a region stands in second place and the U.S. in third.
Copper prices have also faced continued pressure as stockpiles of the metal continue to increase around the world. Copper stored at the London Metal Exchange, Europe's copper trading hub, is up 79% since the start of the year to 572,325 metric tons, its highest level in nearly a decade.
Analysts forecast that copper output from the world's mines will exceed demand for the metal from manufacturers for the first time in four years.
"The red metal's bearish tone can be linked to rising inventory," said traders at RBC Capital Markets in a note to clients.
Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
"Copper at Eight-Month Low on Weaker Growth, Surplus Fears," published at 1:35 p.m. EDT, misstated the decline in the May contract in the second paragraph. The contract fell 4.55 cents, not 4.45 cents.
