Copper Below $7,000 for First Time in 18 Months as Metals Slide

             Copper in London fell below $7,000 for the first time in almost 18 months as data from Europe to China, the biggest user, raised concern that demand is faltering. Aluminum, nickel, zinc, tin and lead also retreated.

Copper for delivery in three months on the London Metal Exchange plunged as much as 4 percent to $6,800 a metric ton, the lowest level since October 2011, and was at $6,840.25 at 9:38 a.m. in Shanghai. Metal for delivery in August was at 50,530 yuan ($8,175) a ton, declining by a daily limit, on the Shanghai Futures Exchange. The July futures contract on the Comex dropped 3.1 percent to $3.1035 per pound.

European car sales are sliding to a 20-year low as demand plunged last month in Germany. TheFederal Reserve said yesterday in its Beige Book business survey the U.S. economic expansion remained “moderate.” China’s first-quarter gross domestic product growth and fixed-asset investments, as well as March industrial production trailed economists’ forecasts.

“After breaching key technical levels, copper is in a downward trajectory,” Xu Liping, an analyst at HNA Topwin Futures Co., said by phone from Shanghai.

Courtesy : Bloomberg