US copper futures regained composure at sharply lower levels after a wave of panic selling took metal to its lowest level since January 2006, and hit financial, energy and commodity markets in early Friday dealings. Traders said a lack of confidence in economic health remains the biggest challenge to restoring stability.
Copper for December delivery steadied with 25.60-cent losses, down 10.64 percent, at $2.1560 a lb on the New York Mercantile Exchange's COMEX division. The session range extended down to $2.05, its lowest level since early January 2006. It tumbled from a high at $2.2995 per lb. Spot October was trading with 12.44 percent losses at $2.1225, down 30.15 cents.
COMEX estimated 9 am futures volume at 6,206 lots. Copper dove to the session low in a rout that swept through metal, commodity, energy, and financial markets-traders. Selling added on to steep declines in overseas markets overnight as lack of confidence in economic health grips investors across the board - traders.
Many investors have been unloading alternative assets to raise cash, while others think an economic recession will squash demand for industrial metals like copper - traders. London Metal Exchange copper warehouse stocks increased by 100 tonnes to 209,400 tonnes on Thursday, their highest level since February 2007.
COMEX copper stocks lost 90 short tons to 9,564 short tons as of Thursday. In London, copper for delivery in three months slid below $5,000 for the first time since March 2006 to a low at $4,630 per tonne. It steadied around $4,9775 a tonne, well below $5,315 at Thursday's kerb close. It gapped lower at the open and reached a 33-month trough at the low.
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