Copper Prices Plummet Amid Europe's Debt Crisis

Copper prices have taken a hit as concerns over Europe's debt crisis continue to simmer. Despite earlier gains, the Comex December copper contract fell by 2.05 cents, or 0.6%, to $3.3880 a pound, weighed down by a stronger dollar and weaker equities. The region's debt crisis has damped the outlook for copper, as Europe is the world's second-largest copper consumer after China.

Key Takeaways:

• Copper prices were down 2.05 cents, or 0.6%, to $3.3880 a pound, as the Comex December contract was recently traded.
• The stronger dollar and weaker equities have undermined demand for copper, with the Standard & Poor's 500 index recently down 0.5% to 1218.38.
• The European debt crisis has damped the outlook for copper, as Europe is the world's second-largest copper consumer after China.
• Finance ministers from the Group of 20 largest economies had set the Oct. 23 meeting as the deadline for resolving Europe's credit problems.
• German Chancellor Angela Merkel said resolving all problems by Oct. 23 is impossible, further weighing on copper prices.
• Freeport McMoran Copper & Gold Inc. (FCX) has halted work at its Grasberg copper and gold mine in Indonesia for "safety reasons" after striking workers blocked all access to the mine.

Statistics:

• Copper prices were down 2.05 cents, or 0.6%, to $3.3880 a pound.
• The Comex December copper contract was recently traded at 0.6% below its previous value.
• The stronger dollar has rallied against a basket of international currencies, with the ICE Dollar Index rising to 76.983 recently.
• The world's second-largest copper consumer, Europe, is converging on the world's largest consumer, China.

Sources:

• Dow Jones Commodities News via Comtex
• Dow Jones Newswires
• Copyright (c) 2011 Dow Jones & Company, Inc.