Copper Falls to 6-Week Low as Global Economic Growth May Slow

By Millie Munshi

July 30 (Bloomberg) -- Copper fell to the lowest price in more than six weeks as signs of slumping economic growth increased concern that global demand for wire and pipe will wane.

Europeans' confidence in the economic outlook dropped the most since the Sept. 11 terrorist attacks. U.S. mortgage applications slumped to the lowest level since December 2000, dimming prospects for homebuilders that are the biggest users of copper. Before today, the metal fell 16 percent from a record in May on concern demand will drop as the global economy cools.

``There is no good economic news,'' said Patrick Chidley, an analyst at Barnard Jacobs Mellet in Stamford, Connecticut. ``Europe looks like it may be getting into more trouble than people were expecting.''

Copper futures for September delivery dropped 4 cents, or 1.1 percent, to $3.5505 a pound at 9:21 a.m. on the Comex division of the New York Mercantile Exchange, after earlier reaching $3.5375, the lowest for a most-active contract since June 13.

The metal also dropped as the dollar touched a one-month high against the euro, reducing demand for raw materials as a hedge against inflation.

On the London Metal Exchange, copper for delivery in three months lost $61, or 0.8 percent, to $7,870 a metric ton ($3.57 a pound). The price reached a record $8,940 on July 2.

To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net