Copper fell 3 percent on Wednesday on investor concerns that elevated crude oil prices could lead to inflation and crimp global growth, denting demand for industrial metals. Copper for three-months delivery on the London Metal Exchange closed at $9,275 a tonne, down from a close of $9,530 a tonne on Tuesday.
"With US copper significantly above $4 a lb, it questions that its recovery might be running its course with high oil. It's the perception that oil could slow down the world's recovery is causing the market to be on the defensive," said Adam Klopfenstein, senior market strategist of MF Global's Lind-Waldock. In New York, COMEX May copper lost 12.6 cents to settle at $4.2125 per lb, after dealing between $4.3790 and $4.1830 - a 2-1/2 month low.