Copper drops on higher inventories, economy worries

Base metals prices dropped on Monday as worries about demand and the wider global economy continued to control the markets.

Copper prices were down 17 cents to $3.03 per pound in New York, while three-month copper fell $245 to $6,795 per tonne on the London Metal Exchange.

Prices declined on another jump in LME copper inventories, up to more than 3.5 days of global consumption, while a recent report from the International Copper Study Group issued a report showing that production exceeded consumption in by 62,000 tonnes in August.

Lead was nearly 9 percent lower in London as it lost $275 to trade in a range around $3,040/$3,050 per tonne, while zinc touched its lowest price in almost two years at $2,310 per tonne before closing at a loss of $170 to $2,355 per tonne.

Aluminium was down $41 to $2,509 per tonne, tin fell $650 to $16,750/$16,800 per tonne, and nickel dropped $1,050 to $30,200 per tonne.

Meanwhile, precious metals prices were mixed.

December gold dropped $9 to $778 per troy ounce by the close of floor trade on declines in equities markets and reduced demand due to price volatility.

Silver for December delivery was also lower, falling 35 cents to $14.16 per troy ounce, but January platinum added $3.90 to $1,457.10 per troy ounce.

Crude oil prices were higher after trading lower for much of the session in New York.

West Texas Intermediate crude January contracts gained 80 cents to $94.64 per barrel on the New York Mercantile Exchange while Brent crude for January delivery added 66 cents to $92.28 per barrel on the ICE Futures Europe exchange in London.

Nymex December gasoline added 1 cent to $2.38 per gallon and January heating oil was up 2 cents to $2.62 per gallon, but January natural gas fell 21 cents to $8.14 per million British thermal units.

December wheat on the Chicago Board of Trade added 6 cents to $7.56 per bushel on concerns that a month with very little or no rain in some wheat-growing regions in the United States have hurt recently planted winter crops.

At last report both corn and soybeans prices had declined.

March CBOT corn was down 2 cents to $3.94 per bushel, while January soybeans were 7 cents lower to $10.70 per bushel.

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