Industrial metals suffer on economy concerns

Base metals prices were lower again Wednesday on continuing worries about the state of the global economy, but a move by the US Federal Reserve, the European Central Bank, the Bank of England and several other central banks to cut interest rates, generally by about half a percentage point each, brought most prices up from session lows before the close of trade on the day.

Copper, which was down by 7.1 percent at one point in London recovered to close down $385 to $5,227 per tonne on the London Metal Exchange while December copper fell 18 cents to $2.36 per pound in New York.

Copper prices were hurt by a prediction from the International Copper Study Group that said there will be a surplus of 100,000 tonnes of the metal this year.

Aluminium was down $53 to $2,250 per tonne while lead fell $55 to $1,575 per tonne, zinc was $120 lower to $1,430 per tonne, tin dropped $1,300 to $14,900 per tonne and nickel closed down at $13,200 after falling to as low as $12,975 per tonne during the session, its lowest price in nearly three years.

Among precious metals, gold and silver gained as investors looked for safe places to put their money, with December gold adding $24 to $906 per troy ounce in New York while December silver gained 36 cents to $11.74 per troy ounce.

January platinum, however, dropped $8.60 to $1,012.10 per troy ounce as it was hurt by concerns that demand could dry up as automobile sales decline.