Copper prices, a barometer for industrial demand, gave up further ground on Tuesday after the red metal lost nearly 4 percent the previous day on concerns about economic growth in China and the United States.
London Metal Exchange copper for delivery in three months was at $6,670 a tonne, down $130 or 1.9 percent from Monday's London close. The metal had traded as low as $6,595, down $205 or 3 percent. Copper has gained 52 percent since the end of last year.
"The market just seems to me generally, increasingly sensitised to demand risks at the moment," said Peter Richardson, chief metals economist at Deutsche Bank. "Demand is always a key factor in any cycle in our view and risks to that have increased." On Monday, copper ended down $260 or 3.7 percent at $6,800 after dipping to $6,735 as investors pulled their money out of commodities and equities on the dollar's rise and fears that tightening monetary policy could slow economic growth.
Prices for copper, used in construction and electronics, had fallen to $6,410 last week, down as much as 27 percent from their May 11 peak of $8,800. Traders said consumers were expected to step into the market at some point to lend support, given ongoing supply disruptions in Mexico and elsewhere and historically low inventory levels.