Copper plunges to lowest price in 3.4 years

The red metal dropped 0.03% to US$ 1.62885 per pound spurred by demand fears.

13 de Noviembre de 2008 | 14:46 | ValorFuturo / REUTERS

LONDON.- Copper closed at its lowest price since July 15th of 2005 today at the London Metal Exchange as a result of demand woes.

The metal also suffered from the heightened value of the dollar, which makes metals more expensive for those holding other currencies, as well as the weak status of the stock market and oil prices, which have dropped to a 22 month low.

Copper fell 0.03% to US$ 1.62885 per pound, compared to US$ 1.62930 on Wednesday and US$ 1.67398 on Tuesday of this week.

As a result, the monthly average dropped to US$ 1.75346 while the yearly average slipped to US$ 3.39505.

"All of the macro indicators are negative and no change is expected", stated Robin Bahr, who is an analyst for Caylon. "We are going to see new lows throughout the rest of the year", he added.

Meanwhile, the future-3-month price ended at US$ 1.66015 per pound, up 0.69% from Wednesday (US$ 1.64881).

At the LME, stocks increased by 2,525 metric tons to 272,625. So far this year, there has been an accumulated increase of 75,175 MT (+38.07%).

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