Copper for March delivery on the New York Mercantile Exchange’s Comex division dropped 11.55 cents (U.S.), or 7.5 per cent, to settle at a two-week low $1.4230 a pound.
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Copper crumbled to a two-week low Tuesday, pulled down by a stronger U.S. dollar and record-low U.S. manufacturing data that ignited a wave of risk aversion across the broader complex.
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Copper has plunged by more than 60 percent since a record high of $8,940 a tonne last July. Prices started to fall in the second half of last year as the market priced in a realisation that China may not be able to offset falling demand from the United States, the world’s largest economy.
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Copper prices buckled on Thursday as a massive jump in inventories intensified fears about falling demand particularly from China, the world’s largest consumer of the industrial metal.
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Copper price dropped by USD 130 per tonne to USD 3,090 per tonne due to the oversupply problem.
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Three-months copper on the London Metal Exchange MCU3 fell to $3,055 a tonne, the lowest price since Jan. 2, before rising to $3,270 a tonne. It ended at $3,251 from $3,090 at the close.
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At the LME, copper for three-month delivery fell 25 dollar to 3,565 dollar a tonne after slipping nearly one per cent.
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At the LME, copper for three-month delivery fell 25 dollar to 3,565 dollar a tonne after slipping nearly one per cent yesterday.
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Copper futures reversed early gains and fell on profit-booking as gloom returned to the markets and worries over dwindling demand heightened, analysts said.
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Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 8 percent in the week to Thursday, while aluminium stocks fell 1 percent. In LME.
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Tuesday, February 17, 2009
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