Shanghai copper hits limit down

Copper prices crashed below $7,000 in London and by the daily limit in Shanghai as fears of a Greek default caused panic about a possible sharp slowdown in global demand for industrial metals. Recent data showing slowing factory output in China and worries about local government debt has also raised concerns about the China-led global economic growth story.
The most-active December copper contract on the Shanghai Futures Exchange halted trading after diving 7 percent against its previous day's settlement price to 53,320 yuan ($8,345.725) per tonne, the lowest since July 21, 2010. "Until policymakers come up with a long-term solution to address the debt crisis, the short-term prospects for copper and equities will remain bearish," said Phillip Futures analyst Ong Yiling.
Dongzheng Futures analyst Du Xiaohua noted that consumption by copper users in China has been lacklustre over the last few days. While demand by big companies was steady, small ones have stopped buying due to shrinking bank credit and worries about the global economy. "I think there is more downside from here. Investors are eyeing a possible deep global recession and that's offsetting any considerations about copper's fundamentals," he said.