Profit taking, oil bring down copper

The price of copper dropped to its lowest level in weeks on Wednesday in London, maintaining a two-day negative momentum on profit taking and the negative sentiment that has spread from the oil sector, where prices are approaching the US$30 a barrel mark.

Spot copper closed 1.67% lower at US$4,585/t (US$2.080/lb) on the London Metal Exchange from Tuesday's US$4,663.50/t (US$2.115/lb), according to Chilean state copper commission Cochilco.

"Metal prices are seeing further profit-taking this morning after having previously achieved what in some cases were sharp gains," Commerzbank said in a note.

The German bank said that comments made by oil ministers of Saudi Arabia and Iran "generated selling pressure," after the Saudi official rejected the idea of production cuts, comments echoed by the Iranian minister, who called the idea of freezing production "ridiculous."

Aluminum closed down 1.5% at US$1,552/t and lead was 1.7% lower at US$1,689.50/t, while nickel fell 1.8% to US$8,520/t. Zinc was down 1.6% at US$1,727/t, tin was 0.8% lower at US$16,145/t and molybdenum was steady at US$12,200/t.

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