Copper futures slumped Wednesday as the International Monetary Fund reportedly lowered its gross domestic product growth forecasts for Japan and the U.S.
The most actively traded copper contract, for May delivery, fell 7.25 cents, or 1.7%, to settle at $4.2740 a pound on the Comex division of the New York Mercantile Exchange.
The metal dipped after Italian news agency ANSA reported the IMF, in a draft report on its outlook for global economic growth, adjusted downward its projections for the U.S. and Japan.
For 2011, according to ANSA, the IMF cut its projected increase in gross domestic product, or GDP, for the U.S. to 2.8% from the fund's previously stated forecast of 3.0%. It cut its GDP growth forecast for Japan to 1.4% from 1.6%.
"The cuts in GDP are never good for copper prices," said Sterling Smith, analyst with Country Hedging.
Copper is particularly sensitive to economic data because it is widely used to make wire, pipe and sheets for electronics, buildings, automobiles and appliances.
The metal had already been under pressure after data from payroll giant Automatic Data Processing Inc. and consultancy Macroeconomic Advisers showed private-sector jobs in the U.S. rose by 201,000 this month compared with an expected 205,000 gain.
Prices weren't helped by news that mining titan BHP Billiton Ltd. (BHP) Wednesday said it approved a $554 million project that would expand the Escondida in Chile, the world's largest copper mine, which is 57.5% owned by BHP.
Meanwhile, inventories of copper stored in London Metal Exchange warehouses rose 225 metric tons Wednesday, to 439,725. The most recent Comex inventory data, released late Tuesday afternoon, were up 22 short tons at 84,747 short tons.
Copper settlements (ranges include electronic and pit trading):
May $4.2740; down 7.25 cents; Range $4.2450-$4.3790
Jul $4.2920; down 7.15 cents; Range $4.2645-$4.3905
豫公网安备41010502003434号