Copper declines on new demand concerns

Copper prices were lower in London and the metal traded about even in New York after Chinese equities markets declined steeply Wednesday, causing investors to worry about the strength of economic recovery and whether demand for metals will recover.

These worries came on top of concerns raised by weaker than hoped for data from the US Commerce Department on housing starts.

Three-month copper fell $155 to $5,925 per tonne on the London Metal Exchange, while September copper traded even at $2.76 per pound in New York.

Other base metals prices were mixed as nickel was down $50 to $18,800 per tonne, aluminium fell $55 to $1,950 per tonne and tin dropped $250 to $13,550 per tonne, but lead added $5 to $1,815 per tonne and zinc gained $10 to $1,805 per tonne.

The price of aluminium dropped as LME inventories added 52,525 tonnes to a new record high at 4.62 million tonnes.

Among precious metals, December gold was $5.60 higher to $944.80 per troy ounce as the US dollar declined while October platinum was up $9.30 to $1,241.40 per troy ounce and, in late morning trade in New York, palladium gained $2.05 to $274.40 per troy ounce

September silver, however, was 9 cents lower to $13.88 per troy ounce.