Copper futures fell the most since mid-October after the European Commission cut growth forecasts for the euro area, damping the demand outlook for industrial metals.
Gross domestic product in the 18-nation region will rise 0.8 percent this year and 1.1 percent in 2015, down from projections for 1.2 percent and 1.7 percent in May, the executive arm of the EU said today. A gauge of six industrial metals traded in London headed for a second straight annual loss for the first time since the recession in 2007-2008. An economic slowdown in China added to concern that demand for raw materials will ebb.
“Europe’s economy is continuing to weaken, and that should put pressure on any kind of chance for building and business expansion,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “So, copper and base-metal prices remain under pressure.”