Copper prices lower on economic concerns

The price of copper fell Thursday as the US dollar strengthened, London-monitored stockpiles rose and investors worried about how monetary policy tightening in China and proposed new bank rules in the United States might affect demand and prices for metals.

New US bank rules proposed by President Barack Obama included limits on speculation by commercial banks, while recent and expected moves by the Chinese government to limit the amount of money banks can lend by requiring them to keep more cash on reserve caused continuing worries that demand for copper and other base metals could weaken.

March copper was 6 cents lower to $3.30 per pound in New York trade, while three-month contracts on the London Metal Exchange dropped $110 to $7,265 per tonne after going as low as $7,220 per tonne earlier in the session.

Inventories monitored by the LME added 8,000 tonnes on the session to 534,650 tonnes, the most in storage in nearly a year, indicating remaining weakness in demand.

Stockpiles of aluminium also grew during the session, adding 18,525 tonnes to a new record high at 4.64 million tonnes, sending prices $29 lower to $2,238 per tonne in London.

Among precious metals, February gold was down $9.60 to $1,103 per troy ounce in New York trade, while March silver fell 37 cents to $17.51 per troy ounce and April platinum dropped $16 to $1,601 per troy ounce.