US copper futures shed more than 5 percent early on Friday as persistent fears about a US-led global recession intensified, raising concerns about demand for industrial metals.
Copper for December delivery sank 9.45 cents, or 5 percent, to $1.7960 a lb by 10:56 am EDT (1456 GMT) on the New York Mercantile Exchange's COMEX division. The morning range from $1.7330 to $1.91. COMEX estimated futures volume at 6,423 lots by 9 am. Bleak economic growth prospects drag industrial metals deeper into negative territory on Friday, said analysts.
Metals caught between offsetting factors - concern about a US-led global recession and production cut-backs, said MF Global analyst Edward Meir. On the fundamental front, Chile's Codelco, the world's largest copper producer, said its copper output fell 8.2 percent in the first nine months of the year, citing a strike by subcontract workers and falling ore grades. China's third interest rate cut in six weeks will be much less of a boost to commodities demand in the world's fastest-growing consumer of raw materials than a hefty infrastructure spending programme.
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