US copper futures slipped to a new three-year low in early trade on Thursday as concerns about demand prospects in a global economic downturn continued to drive investors out of the market. Copper for December delivery was trading down 5.95 cents, or 3.2 percent, at $1.8060 a lb by 10:34 am EDT (1434 GMT) on the New York Mercantile Exchange's COMEX division.
The morning range was from $1.85 to $1.7180 - the lowest level for a third position contract dating back to October 2005, based on a continuation basis. Spot October shed 8.15 cents, or 4.4 percent, to trade at $1.7695. COMEX estimated futures volume at 6,205 lots as of 9 am COMEX copper down nearly 58 percent since the latest move above $4.00 a lb in early July.
The base metals complex is shedding value faster than ever now, as the money flow that drove prices to record highs in mid-year is rushing in the other direction and investors dump "riskier" assets amid growing fears of a global recession, said RBC Capital Markets.