Metals on the LME are mirroring stock markets around the world and seeing value wiped off them.
Stock markets across the globe have seen huge falls as the economic news gets worse. Today in Britain, factory production statistics showed that output fell in June.
Manufacturing output fell 0.4 per cent in June, with car production, chemicals and publishing all shrinking most. Industrial output fell 1.6 per cent between April and June, which was worse than the Office of National Statistics 1.4 per cent estimate.
The settlement price for copper on the LME for Monday was $9,069 (£5,537) but the metal was regularly trading around the $8,800 mark on both Monday and early trading on Tuesday. There are predictions it could fall as low as $8,500, which was last seen in May.
Kingsview Financial head of trading Matthew Zeman said: “It seemed like there was a lot of panic selling as people were shedding any kind of risk no matter what it is. And some people were forced to liquidate their copper holdings to meet margins in stocks and on other markets.”
On Friday, the settlement price for copper was $9,201 (£5,652).
Aluminium was also down to $2,433 (£1,485) from the $2,456 (£1,509) seen at the end of last week. Alloy was at $2,270 (£1,386) only a little down on Friday’s $2,290 (£1,407).
Lead was priced at $2,346 (£1,432) on Monday down from $2,440 (£1,499) on Friday. Nickel settled at $22,275 (£13,600) lower than the $23,120 (£14,201) settlement price on Friday.
Tin was at $23,800 (£14,531) on Monday from Friday’s $24,750 (£15,203). Zinc dropped to $2,172 (£1,326) from Friday’s $2,278 (£1,399).
Only steel was up adding $5 to $575 (£351) from the end of last week’s $570 (£350).