Oct. 3 (Bloomberg) -- Copper futures fell below $3 a pound to a 14-month low on signs that demand for industrial metals will wane as economies falter.
Manufacturing contracted in Europe for a second straight month, Markit Economics said today. Japan’s Tankan survey showed sentiment among the nation’s largest manufacturers remains worse than it was before March, when the country was hit was an earthquake and tsunami. Copper dropped 30 percent in the two months ended Sept. 30 on concern that consumption will ebb in Europe and China, the world’s top metal user.
“A lot of damage has been done to this market,” Matthew Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview. “People just don’t have a positive outlook for the economy. That’s the bottom line.”
Copper futures for December delivery dropped 0.15 cent to settle at $3.1505 at 1:12 p.m. on the Comex in New York, after touching $2.994, the lowest since July 20, 2010.
Morgan Stanley last week cut its price forecast for 2012 by 17 percent to $3.80 a pound, citing a “rapidly diminishing prospect of global growth being robust enough to deliver stronger base-metals prices.”
On the London Metal Exchange, copper for delivery in three months fell $28.50, or 0.4 percent, to $6,990 a metric ton ($3.17 a pound). The price has dropped 31 percent from a record $10,190 on Feb. 15.
Lead declined, while nickel, tin, zinc and aluminum gained in London.
--With assistance from Jae Hur in Singapore and Debarati Roy in n New York. Editors: Millie Munshi, Steve Stroth
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