--Comex July copper settles down 7.10 cents, or 2.3%, at $3.0245
a pound
--Futures slide again as China cash crunch raises demand
worry
--LME warehouse stockpiles hit decade high Friday; more than
doubled in 2013
(Adds price table, detail on price move.)
By Matt Day
NEW YORK--Copper futures fell to the lowest level in almost
three years Monday on worries about demand from top consumer China
amid a credit squeeze and slowing growth there.
The most actively traded copper contract, for July delivery,
settled down 7.10 cents, or 2.3%, at $3.0245 a pound on the Comex
division of the New York Mercantile Exchange, the lowest since July
20, 2010.
Chinese equities notched their biggest fall in almost four years
Monday on concern that the central bank wouldn't take fresh steps
to ease a liquidity crunch that at one point last week pushed
overnight lending rates to 30%. The squeeze has added to worries
about the health of the world's No. 2 economy, following recent
reports that showed contracting manufacturing activity.
"It just means less demand from China, and they're the biggest
buyer out there," said Frank Lesh, a broker with FuturePath
Trading. China accounts for about 40% of global copper consumption.
Lending curbs could limit the amount of copper product
manufacturers are able to import.
Also Monday, data showed London Metal Exchange copper stockpiles
late last week hit a fresh decade high, bolstering the view that
supply was outstripping demand. Warehouses hold 678,225 metric tons
of copper, more than double the 320,050 tons stored at the start of
2013.
Meanwhile, Freeport-McMoRan Copper & Gold Inc. (FCX) said
Monday it resumed open-pit mining at its massive Grasberg mine in
Indonesia. Operations there were idled after an accident in May
killed 28 workers. The government, which had ordered the company to
suspend activities until investigations were complete, approved the
restart over the weekend, Freeport said.
Mining at Grasberg's underground operations will remain
suspended for further investigations, the company said, reducing
production by about 453 metric tons a day.
Settlements (ranges include open-outcry and electronic trading):
Jun copper $3.0260, down 7.05 cents; Range $3.0065-$3.0260
Jul copper $3.0245, down 7.10 cents; Range $2.9875-$3.0950
Write to Matt Day at matt.day@dowjones.com
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