New York, June 7th (TradersHuddle.com) - Copper fell to a seven-month low in London on concern over the metal’s demand may be curbed by slowing economic growth.
Freeport McMoRan (NYSE:FCX), the largest publicly traded copper producer, fell more than 5% and the iPath DJ-UBS Copper TR Sub-Idx ETN (NYSE:JJC) fell 5.7% on Friday’s trading session as slowing economic growth may curb demand for industrial metals used in cars and homes. Copper has declined 16% this year.
Copper for delivery in three months on the London Metal Exchange fall up to $6,074 a ton, the lowest price since October. Copper for July delivery slid 1.4% on the Comex in New York.
Industrial metals as measured by the London Metals Exchange index dropped 11% last week, the most since December 2008.
The sentiment in the base metal sector is bearish, as the pace of the economic recovery is slowing. Bears see that we have already reached the peak of the pace of the recovery and from here they only see a slower pace, forcing traders and investors to adjust their positions in the base metals sector to reflect the lower expectations.
