Source: http://www.miningweekly.com      June 09, 2010

Industrial metals sank on Monday, with copper hitting an 8-month low as investors sold off riskier assets on mounting fears over the Eurozone economy's health, which knocked down its single currency.
At one stage, copper for three-months delivery on the London Metal Exchange fell to USD6,074 a ton, its lowest since October 13. Technical charts point to further weakness for LME copper which could soon breach USD5 814, a level last seen in early October 2009, said a market analyst. On open interest copper saw some 2,300 lots on Friday last week, bringing the total to its highest since end-May, but it was still more than 15,000 lots below its high struck in mid-April.
"The U.S. and fundamental aspects in metals like declining stocks have formed a natural floor. Perhaps the floor itself will (now) be lower, the third quarter is quiet anyway because of the summer," an analyst said.
Also knocking metals, data last week pointed to a slowdown in the pace of manufacturing activity in China, the world's top metals consumer, as gradual monetary policy tightening took a toll on new orders. "China's economic growth has shifted into a lower gear following a very strong period in Q4-2009 and Q1-2010," Standard Chartered said in a note. "We expect China to slow over the next six months, but not dramatically."
On the plus side, LME copper stocks, which indicate demand trends, fell to their lowest level since late December, and have now fallen from six and a half year highs hit in mid- February.