Copper in big declines on economic concerns

Three-month contracts for copper on the London Metal Exchange dropped $230 to $6,590 per tonne on Wednesday, a two-and-a-half month low, as investors continued to worry about how China’s tighter monetary policy might affect demand.

Concerns also focused on the pace of worldwide economic recovery as March copper fell 12 cents to $2.97 per pound in New York.

Copper prices might have fallen even further, but inventories of the metal used in manufacturing and construction fell by 675 tonnes in LME-monitored warehouses, their second consecutive daily decline.

Aluminium stockpiles were also lower, falling 6,600 tonnes, but they remained near record highs and three-month contracts for aluminium were down $37 to $2,083 per tonne.

Lead, zinc and nickel prices were also lower in London, but tin prices climbed on the session.

Precious metals prices were lower in New York, where April gold was down $6 to $1,112 per troy ounce while March silver fell 43 cents to $16.32 per troy ounce and April platinum dropped $4.80 to $1,574 per troy ounce.