The strong US dollar and demand concerns left copper dropping 6.3% to $2.52 a pound.

Copper down in line with sharp losses on Wall Street, with the Dow Jones industrial average .DJI down 309.59 points, or 3.00 percent, at 10,015.79. The Standard & Poor’s 500 Index .SPX off 37.99 points, or 3.46 percent, at 1,061.24, and the Nasdaq Composite Index weaker by 75.04 points, or 3.85 percent, at 1,872.35.

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The euro has dropped leaving the US dollar at a 13-month high.  London Metal Exchange‘s inventories were up by 250 tonnes.  While one of the world’s biggest copper producers, Southern Copper, may see reduced production on their projects in Peru and Mexico due to the global financial crisis they will certainly continue production if the credit markets continue to tighten.

London copper for delivery in three months MCU3 dropped to $5,545 a tonne, its lowest since January 2007, and was last at $5,598, down $412 from Friday’s closing level

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