Copper prices fall on economic, demand concerns

Copper prices dropped again Friday on concerns that recent data indicates that recover from the recession is faltering, which in turn raised fears that demand for the metal will decline, while a stronger US dollar also hurt prices because it made copper more expensive for purchasers using other currencies.

September copper was down 3 cents to $3.29 per pound in New York, while three-month contracts for the metal used in construction and manufacturing did not trade at the close of trade on the London Metal Exchange but was down $57 to $7,252 per tonne in its final bids of the session.

The declines came even though LME-monitored stockpiles were last down 1,800 tonnes, continuing recent declines.

Aluminium fell $26 to $2,040 per tonne in London trade, while last bids for zinc were $32 lower to $2.058 per tonne, lead dropped $49 to $2,056 per tonne, nickel was down $245 to $21,550 per tonne, and tin was $450 lower to $20,650 per tonne even though continuing heavy rains could hurt mining output in Indonesia.

Trade volumes were low as December gold fell $6.60 to $1,228.80 per troy ounce on the stronger dollar, while September silver fell 34 cents to $18 per troy ounce.

Earlier in the session, October platinum was $13.60 lower to $1,513.90 per troy ounce and September palladium had dropped $9.45 to $476.20 per troy ounce.