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Europe Overshadows Demand from China, Copper Weakens

December 6, 2012 at 19:32 by Vladimir Vyun

Copper prices declined today in New York on bad news from Europe. The revised report confirmed that the economy of the eurozone declined 0.1 percent in the third quarter of this year. The European Central Bank revised its growth forecast for the next year to a recession by 0.3 percent from the previous prediction of 0.5 percent growth. All in all, today’s news hurt the outlook for Europe’s economy that previously has been fairly optimistic after Greece had received a bailout and announced a bond-buyback program.

For some time, copper was getting support from hopes for stimulus in China. The Asian economy is planning to expand infrastructure and that means rising demand for the industrial metal. Such outlook is positive for copper, but today it was overshadowed by the news from the eurozone.

Copper futures for delivery in March dropped as much as $0.0420 (1.14 percent) to $3.6445 per pound as of 19:25 GMT on COMEX today. Prices for copper rose $43.00 (0.54 percent to $8,075.00 per metric ton on LME.

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