Investing.com - Copper prices plunged to the lowest level since July 2010 on Wednesday, as ongoing concerns over the health of China’s economy dampened demand for growth-linked assets.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery fell to a session low of $2.878 a pound, the weakest level since July 2010.
Copper last traded at $2.889 a pound during U.S. morning hours, down 2.13%, or 6.3 cents. The May copper contract eased down 0.02% on Tuesday to settle at $2.951 a pound.
Futures were likely to find support at $2.844 a pound, the low from July 2010 and resistance at $2.992 a pound, the high from March 18.
Sentiment continued to be weighed by concerns over the health of China’s property sector after real estate developer Zhejiang Xingrun reportedly defaulted on nearly $600 million in debt on Tuesday.
Concerns over domestic bond defaults stoked investor worries that financing deals that have locked up vast quantities of copper could unravel.
A cooler property sector not only weighs on demand for copper as construction material, but also dampens consumption from the home appliances sector.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, investors were jittery ahead of the Federal Reserve's upcoming policy statement later in the day.
The U.S. central bank was widely expected to continue to roll back its bond purchasing program by $10 billion at the conclusion of its monthly meeting later Wednesday, the first with Janet Yellen at the helm.
Elsewhere on the Comex, gold for April delivery fell 1.04%, or $14.20, to trade at $1,344.80 a troy ounce, while silver for May delivery lost 0.72%, or 15 cents, to trade at $20.71 an ounce.