New York copper prices fell on Tuesday as European growth worries remained in focus, eroding earlier support from upbeat Chinese factory data. In New York, the COMEX September copper contract shed 2.70 cents, or 0.8 percent, to settle at $3.3530 per lb, after dealing between a one-month low at $3.3385 and $3.4015.
COMEX trading volumes picked up as the late bout of selling took hold, to stand at 55,000 lots in late New York business, up more than 20 percent from the 30-day average, according to preliminary Thomson Reuters data. "The HSBC Flash index has been disappointing in recent months but this would indicate that things are levelling out after slowing through the second quarter," said Patricia Mohr, vice president, economics and commodity market specialist at Scotiabank.
"That's a positive sign for industrial activity. I expect things will strengthen in China ... industrial production will rally by the fourth quarter. It's quite possible to see copper back up at $3.75 (per lb) at some point in the fourth quarter."