(31/03) Copper Falls on Concerns About Global Demand

March 31, 2011

Copper prices lost ground Wednesday as global events such as Japan's crisis renewed concerns about demand in the next few months.

Copper for May delivery fell 7.25 cents to settle at $4.274 a pound. The price has fallen nearly 5 percent since March 1.

Investors question whether copper demand will soften with Japan's recovery from the earthquake and tsunami, Europe's ongoing financial problems and rising oil prices, CPM Group analyst Carlos Sanchez said.
Copper is used in manufacturing a variety of consumer products, from construction materials to electronics and some auto parts.

Thousands of factories in Japan were idled by tsunami damage and power disruptions after the devastating earthquake earlier this month. That has left shortages of auto parts and technology components.

Meanwhile, Portugal's borrowing rates continued to rise, which could weaken market confidence in the region's ability to resolve the crisis. Europe already has arranged multi-billion dollar bailouts for Greece and Ireland.