Copper futures down 6%, hit lower circuit

Copper futures hit the lower circuit today with prices falling by 6% to Rs 361.65 per kg, after the metal dropped to one-year low at the London Metal Exchange due to deepening European debt crisis spurred concerns that demand for industrial metals will decline.

In addition, data showing that the Chinese economy may be headed for a period of slowdown also put pressure on the metal prices in futures trade here.

At the Multi Commodity Exchange, November copper fell sharply by Rs 23.10, or 6%, to close at Rs 361.65 per kg, with a business turnover of 19,300 lots.

The February contract eased by Rs 23.35, or 6%, to Rs 365.75 per kg, with a trade turnover of 1,714 lots.

Globally, copper for three-month delivery fell by 2.2% to $7,505 per tonne at the LME, the lowest price since September 10, 2010.

Analysts said a weakening trend at the LME over concerns that demand for metals would decline on deepening eurozone debt crisis and fears of a US recession, mainly put pressure on the copper futures prices here.