Investing.com - Copper futures were down for a second day on Wednesday, as lingering concerns over a slowdown in Chinese economic growth dampened sentiment on the industrial metal ahead of the release of key U.S. data on durable goods orders.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.840 a pound during European morning trade, tumbling 1.05%.
It earlier fell by as much as 1.25% to trade at a two-day low of USD3.835 a pound.
Lingering concerns over a ‘hard landing’ in China continued to weigh on the industrial metal as a slew of weak earnings reports added to concerns over the Asian nation’s economic outlook.
China’s biggest copper producer Jiangxi Copper Company said late Tuesday that net income for the second half of 2011 fell 18% from a year earlier to CNY2.27 billion, trailing estimates for income of CNY3.04 billion.
Meanwhile, China’s second largest steelmaker Angang Steel Company reported a wider second-half loss because of waning demand.
Copper, like steel, is regarded as a leading indicator of the global economy. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics.
Also weighing on sentiment, JX Nippon Mining and Metals Corporation, the parent of Japan's top copper smelter, said China's copper appetite was weakening, weighed down by elevated inventories and tight monetary policy.
Concerns over a possible slowdown in China resurfaced last week, after data showed that manufacturing activity contracted for the fifth consecutive month in March.
Beijing recently downgraded its growth outlook for 2012, while investors were spooked by a large trade deficit for February and comments from mining giant BHP Billiton that the nation’s demand for iron ore will flatten amid a slowdown in China's economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Meanwhile, copper traders were awaiting a U.S. government report on durable goods orders later in the day to further asses the strength of the U.S. economy and the need for further monetary easing to help boost growth.
In a televised interview with ABC News Tuesday, Federal Reserve Chairman Ben Bernanke warned that the U.S. economy isn't on a certain path to a full recovery.
“The recent news has been good,” Bernanke said, “But I think we need to be cautious and make sure this is sustainable. And we haven’t quite yet got to the point where we can be completely confident that we’re on a track to full recovery.”
Elsewhere on the Comex, gold for June delivery fell 0.5% to trade at USD1,678.95 a troy ounce, while silver for May delivery dipped 0.35% to trade at USD32.50 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.840 a pound during European morning trade, tumbling 1.05%.
It earlier fell by as much as 1.25% to trade at a two-day low of USD3.835 a pound.
Lingering concerns over a ‘hard landing’ in China continued to weigh on the industrial metal as a slew of weak earnings reports added to concerns over the Asian nation’s economic outlook.
China’s biggest copper producer Jiangxi Copper Company said late Tuesday that net income for the second half of 2011 fell 18% from a year earlier to CNY2.27 billion, trailing estimates for income of CNY3.04 billion.
Meanwhile, China’s second largest steelmaker Angang Steel Company reported a wider second-half loss because of waning demand.
Copper, like steel, is regarded as a leading indicator of the global economy. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics.
Also weighing on sentiment, JX Nippon Mining and Metals Corporation, the parent of Japan's top copper smelter, said China's copper appetite was weakening, weighed down by elevated inventories and tight monetary policy.
Concerns over a possible slowdown in China resurfaced last week, after data showed that manufacturing activity contracted for the fifth consecutive month in March.
Beijing recently downgraded its growth outlook for 2012, while investors were spooked by a large trade deficit for February and comments from mining giant BHP Billiton that the nation’s demand for iron ore will flatten amid a slowdown in China's economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Meanwhile, copper traders were awaiting a U.S. government report on durable goods orders later in the day to further asses the strength of the U.S. economy and the need for further monetary easing to help boost growth.
In a televised interview with ABC News Tuesday, Federal Reserve Chairman Ben Bernanke warned that the U.S. economy isn't on a certain path to a full recovery.
“The recent news has been good,” Bernanke said, “But I think we need to be cautious and make sure this is sustainable. And we haven’t quite yet got to the point where we can be completely confident that we’re on a track to full recovery.”
Elsewhere on the Comex, gold for June delivery fell 0.5% to trade at USD1,678.95 a troy ounce, while silver for May delivery dipped 0.35% to trade at USD32.50 a troy ounce.