SINGAPORE, April 28 (Reuters) - London copper and aluminiumfutures fell on Wednesday after tumbling in the previoussession over exploding worries about euro zone sovereign debt.
Three-month copper on the London Metal Exchange CMCU3MCUKA3 fell as much as $117, or 1.6 percent, to a low of$7,373 early on Wednesday, having tumbled 4.1 percent in theprevious session, its biggest one-day fall since late January.
By 0034 GMT, copper stood at $7,420, down $70. Aluminium CMAL3MALKA3, fell $5 to $2,145 after a 7.1percent slump in the previous session, its biggest one-day fallin at least five years. “These markets suddenly look very weak. If 'Greece is theway we are feeling', it's not surprising we have seen pricestumble,” a trader in Sydney said.
Shanghai futures were also expected to fall sharply at theopen, targeting downside limits. “With the losses we've seen in London, I think limit downsin aluminium and copper are probable,” the trader added.
Equity markets also plunged worldwide and the euro sufferedits biggest one-day percentage drop against the dollar in ayear on Tuesday after Standard & Poor's cut its credit ratingon Greece to “junk” level and slashed its ratings on Portugal. Standard & Poor's downgraded Athens' rating by a full threenotches to BB-plus, the first level of speculative, or "junk” status. On Portugal, Standard & Poor's cited concerns about itsability to deal with high debt levels given its weak economicoutlook and cut the rating by two notches to A-minus.
[ID:nWNA9638] [ID:nWNA9645] “The credit ratings downgrades fuelled concerns over theprospects for economic recovery in Europe, causing metalsprices to tumble lower,” Commonwealth Bank of Australia said ina note. “The aluminium price fell by over 7 percent. The high levelof aluminium stocks had left the aluminium price especiallyvulnerable to a decline.” LME stocks of aluminium, though on a downward path, remainabove 4.55 million tonnes.
Base metals prices at 0034 GMT
Metal Last Change Pct Move End 2009 YTD pct
chg
LME Cu 7420.00 -70.00 -0.93 7375.00
0.61
LME Alum 2145.00 -5.00 -0.23 2230.00
-3.81
COMEX Cu** 336.35 -16.35 -4.64 332.75
1.08
LME Zinc 2340.00 -21.00 -0.89 2560.00
-8.59
LME Nickel 25600.00 -325.00 -1.25 18525.00
38.19
LME Lead 2265.00 -35.00 -1.52 2432.00
-6.87
LME Tin 0.00 -18550.00 -100.00 16950.00
-100.00
Dollar/yuan 6.8252 \ 6.8262
** 1st contract month for COMEX copper
(Reporting by Nick Trevethan; Editing by Clarence Fernandez)