Copper continued its slide for the fourth day in a row, the longest fall in almost two months in New York, on signs that a global economic recovery likely will be slow to take off.
The global economy will contract 1.4% this year, deeper than forecast in April, and a sustained recovery may be a year away, the International Monetary Fund on Wednesday. Group of Eight leaders said they will delay reversing stimulus measures until a rebound is assured. Meanwhile, Europe’s economy declined by a record in the first quarter, according to data put out on Wednesday.
Copper for September delivery slid 6.65 cents, or 3%, to $2.159 a pound on the New York Mercantile Exchange’s Comex division, capping the longest decline for the most-active contract since May 15. Copper has plunged 7.4% in the past four sessions.
Copper has surged 53% this year on speculation that the worst of the global recession was past and as China, the world’s biggest metals user, imported supplies. The Asian nation’s copper imports may plunge 64% in the second half of 2009 after record shipments from January through June led to excess inventories, according to analysts.
Copper for three-month delivery fell $155, or 3.2%, to $4,725 a metric tonne ($2.14 a pound) on the London Metal Exchange, its fifth straight decline and the longest this year.
Among other LME metals for three-month delivery, aluminium fell 4.2%, tin plunged 6%, nickel tumbled 4.5%, lead tanked 3% and zinc declined 4%.