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NY Copper Falls Under $3 Amid Pall Over Growth

NEW YORK, Jun 02, 2010 (Dow Jones Commodities News via Comtex) --

By Matt Whittaker
Of DOW JONES NEWSWIRES

Copper futures are back below $3 as gloom persists about global economic recovery.

The most-actively traded contract, for July delivery, was recently down 8 cents, or 2.6%, at $2.9830 a pound on the Comex division of the New York Mercantile Exchange.

Copper--widely used in manufacturing and construction and considered an economic indicator--has been under pressure since hitting 20-month highs above $3.60 in early April. Behind the pressure are concerns that spiraling European sovereign debt problems could hamper the global economic recovery.

It's bounce after dipping to the $2.90s last month now appears to be fading as sentiment sours while euro-zone worries continue and concerns emerge about demand from China, the world's largest copper consumer.

Data Tuesday showed slowing growth in factory activity in the Asian nation.

"The market is resuming its downtrend," said John Gross, independent metals-industry consultant based in Exeter, R.I.

In another indicator of demand, inventories of copper stored in London Metal Exchange warehouses fell 350 metric tons Wednesday, leaving them at 475,225 tons. The most recent Comex inventory data, released late Tuesday afternoon, were up 137 short tons at 101,928 short tons.

-By Matt Whittaker, Dow Jones Newswires; 212-416-2139; [e-mail]

(END) Dow Jones Newswires

06-02-10 0919ET

http://news.tradingcharts.com/futures/2/8/140525582.html