Copper prices down on economic, demand worries

Copper prices dropped again in New York on Monday.

The decline came on economic worries brought on by last week’s reports that manufacturing activity in the US contracted in December and on data showing that fewer jobs than expected were created in the last month of 2007 and that the unemployment rate rose to 5 percent.

Those concerns, combined with rising inventories, caused analysts and investors to worry that demand for the metal used in construction and manufacturing will decline.

March copper dropped 2 cents to 3.14 per pound in New York, while three-month copper on the London Metal Exchange traded about steady at $6,905.25 per tonne, or $3.13 per pound.

LME copper inventories rose 1.2 percent on the session to 201,000 tonnes.

Precious metals prices were also down in New York as the dollar strengthened and oil prices fell significantly.

February gold was down $3.40 to $862.30 per troy ounce while March silver was 17 cents lower to $15.29 per troy ounce and April platinum dropped $16 to $1,531.10 per troy ounce.