US copper futures settled sharply lower on Wednesday, stemming a two-day rally as a sell-off on Wall Street and fears of a global recession spurred further liquidation in the industrial metal, analysts said. Copper for December delivery plunged 18.40 cents, or 7.7 percent, to close at $2.2105 a lb on the New York Mercantile Exchange's COMEX division.
On the fundamental front, workers at Chile's main copper exporting port in the northern city of Antofagasta have begun an indefinite strike action to demand improved work conditions. London Metal Exchange (LME) copper warehouse stocks fell by 175 tonnes to 211,625 tonnes on Wednesday.
COMEX copper stocks were off 335 short tons at 9,091 short tons as of Tuesday. LME copper for three months delivery closed at $4,920 a tonne, down $378 from Tuesday's closing bid at $5,298.