Copper price crashes on World Bank growth outlook
The price of copper tumbled Wednesday to the lowest level for more than five years after the World Bank slashed its global economic forecasts.
Copper for delivery in three months plunged in Asian trading hours to $5,353.25 per tonne, a level last seen in July 2009. That marked an 8.0-percent slide from Tuesday's close.
Copper, which is used in plumbing, heating, electrical and telecommunications wiring, clawed back ground in late morning deals in London to stand at $5,564.50 per tonne.
"Unease over the global economy engulfed commodities," said analyst David Papier at trading firm ETX Capital.
Copper "is often considered a barometer of industrial demand, so the slump leant extra gravitas to news that the World Bank had cut its 2015 growth forecasts blaming sluggishness in the eurozone, Japan and some major emerging economies", Papier noted.
The World Bank on Tuesday predicted that global economy would grow by 3.0 percent in 2015.
That marked a downgrade from the previous forecast of 3.4 percent that was given in June.
"The global economy is slowing down," said analyst Connor Campbell at dealer group Spreadex.
"It does not help copper that commodities in general are suffering," he added amid a slump for oil prices.
© 2015 AFP