Worries about weaker demand from China, the world’s top copper consumer, pushed copper futures to their lowest level in nearly two weeks.
The most-actively traded contract, for July delivery, fell 2.2 cents, or 0.7 per cent, to settle at $US3.1230 a pound on the Comex division of the New York Mercantile Exchange. This was the lowest settlement since copper futures closed at $US3.0830 on May 9.
Copper futures have been recovering in recent weeks, as some investors wagered that fears of an economic slowdown in China were overblown and that low inventories of the metal could send prices higher.
China accounts for about 40 per cent of global copper demand, with much of the metal being used by the country’s manufacturing and construction sectors.
On Wednesday, those worries reemerged after Moody’s Investors Service downgraded its outlook for China’s property industry to negative, after holding it at stable for about a year and a half.
The ratings firm cited expectations of a significant slowdown in residential-property sales growth, high inventory levels and weakening liquidity over the coming 12 months.
Lacklustre monthly gains in China’s copper imports also weighed on sentiment.