LONDON.- Copper closed with a 2.06% drop today at the London Metal Exchange after trading for US$ 1.29297 per pound compared to US$ 1.32018 on Monday of this week and US$ 1.28185 on Friday of last week, which was its lowest value in more than four years.
The price of the metal plummeted due to a lack of investor confidence in the lower-than-expected interest rate cut in China, while demand woes continue to surge on the somber economic forecasts.
China slashed interest rates yesterday in the nation's most recent attempt to avoid the growing economic slow-down. The reduction however, which is the fifth since September, was less than many analysts had predicted.
Adding to concerns with regards to the metal, the International Association for Copper Studies has indicated that worldwide refined copper surplus increased by 67% during the January-September time period after the lowered demand in Japan, the European Union and the United States prevailed over the high Chinese demand.