Copper futures tumble more than 1% on World Bank outlook

Copper futures fell sharply to re-approach a five-week low on Thursday, as the industrial metal’s appeal was dented after the world bank cut its global growth outlook.

Copper is sensitive to the economic growth outlook because of its widespread uses across industries.

On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.184 a pound during European morning trade, down 1.3% on the day.

New York-traded copper prices fell by as much as 1.4% earlier in the session to hit a daily low of USD3.181 a pound. Copper futures fell to a five-week low of USD3.164 a pound on June 11.

The World Bank lowered its growth estimate for the global economy in 2013 to 2.2%, down from a previous estimate of 2.4%. 

For next year, the World Bank said it expects 3% growth worldwide, compared to its January forecast for growth of 3.1%.

It also lowered its projection for China’s economic growth to 7.7% from 8.4% and said the euro zone's gross domestic product will fall 0.6%.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year, while Europe as a region is third in global demand for the industrial metal.

Copper traders now looked ahead to the release of official data on U.S. retail sales and the weekly government report on initial jobless claims later in the trading day.

Any improvement in the U.S. economy could scale back expectations for further easing, putting upward pressure on U.S. yields and boosting the dollar.

Investors have remained cautious in recent sessions amid ongoing speculation over whether the Federal Reserve will begin to unwind its easing program in the coming months.

Elsewhere on the Comex, gold for August delivery was down 0.35% to trade at USD1,387.15 a troy ounce, while silver for July delivery dipped 0.2% to trade at USD21.76 a troy ounce.

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