Forexpros – Copper futures were down for a third day on Thursday, trading close to a one-week low as sustained fears over the outlook for global growth continued to weigh on the industrial metal.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.772 a pound during European morning trade, slumping 0.55%.
It earlier fell by as much as 0.68% to trade at USD3.768 a pound, the lowest since March 23.
Appetite for growth-linked assets took a hit after U.S. data on Wednesday showed that durable goods order fell more-than-expected in February, adding to concerns over the global growth outlook.
Copper traders were awaiting a U.S. government report on initial jobless claims later in the day as well as revised data on gross domestic product to further asses the strength of the U.S. economy.
Investors are also concerned about recent signs of a slowdown in China. Last week data showed that manufacturing activity contracted for the fifth consecutive month in March.
Beijing recently downgraded its growth outlook for 2012, while investors were spooked by a large trade deficit for February and comments from mining giant BHP Billiton that the nation’s demand for iron ore will flatten amid a slowdown in China’s economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Copper, like steel, is regarded as a leading indicator of the global economy. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics.
Market participants were shifting their focus to Friday’s summit of euro zone finance ministers in Copenhagen to discuss running the region’s EUR500 billion permanent bailout fund, the European Stability Mechanism, in conjunction with EUR200 billion from the region’s temporary fund.
Spain’s debt problems were also on investors’ minds as a major general strike got underway, protesting austerity moves by the government.
Europe as a region is second after China in global demand for the industrial metal and worries over its economic growth have kept copper prices under pressure in recent weeks.
Elsewhere on the Comex, gold for June delivery dipped 0.15% to trade at USD1,658.05 a troy ounce, while silver for May delivery eased up 0.15% to trade at USD31.87 a troy ounce.
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