Source: The Wall Street Journal Asia, Reuters.com                            Date: 02 July, 2010

Copper futures slumped this week as disappointing economic data from Asia and the U.S. painted a bleak picture of demand for the industrial metal. Most-active copper for September delivery was down 4.7%, at USD2.9445 per pound on the Comex division of the New York Mercantile Exchange. The nearby July contract slid 4.8%, to USD2.9250. It has skidded 12% so far this year, although it remains up 30% over 52 weeks.

Concerns about China, the world's largest consumer of copper, were fanned after the Conference Board revised its leading economic indicator for China to a gain of 0.3% for April, compared to the previously reported 1.7% rise. Adding to worries about the health of the global economy, Japan reported that industrial production slipped 0.1% in May, while household spending fell 0.7%. Copper's weakness then accelerated after an "absolutely horrible" report on U.S. consumer confidence, said an analyst.

Copper for three-month delivery on the London Metal Exchange was trading at USD6,425/t  on Tuesday. Earlier it had fallen to USD6,340 /t, its lowest since June 18. The metal used as a gauge of economic activity is on course for its first quarterly loss since the last three months of 2008 when it fell below USD3, 000/t.

The metal has lost nearly 20% since early April. Still, there are some supportive factors that are keeping copper from declining further. Inventories stored in London Metal Exchange warehouses keep declining, while canceled warrants, which are earmarked for delivery, continue to rise.