Copper prices drop as demand concerns continue

Copper prices were lower again Wednesday on continuing concerns that slower factory output in the US, Europe and China will hurt demand for the metal used in manufacturing and construction, while investors also worried about the European debt crisis and what effect it will have on demand, considering that 20 percent of the world’s copper output is consumed by Europe.

July copper was down 2 cents to $3.04 per pound in New York trade, while three-month contracts on the London Metal Exchange fell $85 to $6,665 per tonne, while aluminium, lead, tin, zinc, and nickel all saw price declines as well.

Prices for copper fell 7.4 percent in May and were down 8.5 percent on the year so far, excluding today’s trade.

August gold was $4.30 lower to $1,222.60 per troy ounce in New York trade, after falling to around $1,210 per troy ounce earlier, with its biggest declines coming after the National Association of Realtors issued a report showing that pending home sales reached a 6-month high in April, adding 6 percent during the month on a rush to buy in order to qualify for a tax credit.

September palladium was also lower, falling $8.85 to $453.30 per troy ounce, but July platinum managed to add $1 to $1,550.40 per troy ounce on the session.