London copper futures fell 2 percent on Friday, their fifth straight day of losses, and with prices down 18 percent so far this week, the market is set for its second biggest weekly loss on record. Growing worries the world is heading to recession have seen copper prices plummet an astonishing 39 percent so far in October and will likely also see its biggest-ever monthly slide, surpassing the March 1980 fall of just over 24 percent.
"There is still more room on the downside for all metals especially copper," said Judy Zhu, commodity analyst at Standard Chartered Bank. London Metal Exchange copper for delivery in three months fell 2 percent to $3,960 a tonne, having touched a three-year low of $3,815 overnight.
"Copper prices are just starting to nibble at the top of the cost curve, but we have not heard of any major cutbacks in production," Zhu said. She added that prices could dip to $3,500 and even to $3,000, the bottom of Standard Chartered's cost curve estimates. "Prhief Executive Jose Pablo Arellano said on Thursday.
Shanghai copper and zinc markets will be closed on Friday, suspended for one day after falling by their daily limits for three days running. Trade will resume on Monday. London nickel, the complex's big loser - down more than 80 percent from a record high in 2007 - fell $50 to $9,300.
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