Investing.com - Copper prices fell to a new six-year low on Tuesday, as investors continued to cut holdings of the red metal amid persistent worries about future demand from top consumer China.
Copper for March delivery on the Comex division of the New York Mercantile Exchange shed 1.7 cents, or 0.86%, to trade at $1.957 a pound by 08:00 GMT, or 3:00AM ET. It earlier fell to $1.953, a level not seen since April 2009.
Meanwhile, three-month copper on the London Metal Exchange slumped 0.52% to $4362.50 a metric ton, the lowest since May 2009.
On Monday, copper plunged 4.9 cents, or 2.45%, as steep declines on Chinese stock markets dampened appetite for the red metal.
Market players are concerned that the plunge in the stock market could spread to other parts of the Chinese economy, triggering fears that the Asian nation's demand for the industrial metal will decline.
The next slice of Chinese economic data to come out will be trade data for December, due on Wednesday. The report is expected to show that the country’s trade surplus narrowed to $53.0 billion last month from $54.1 billion in November.
Chinese exports for December are forecast to drop 8.0% from a year earlier, following a decline of 6.8% a month ago, while imports are expected to slump 11.5%, after falling 8.7% in November.
Prices of the red metal are down nearly 8% so far in 2016 as a meltdown on China’s stock market and a rapid depreciation of the yuan rattled investor sentiment.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.
Elsewhere in metals trading, gold futures inched lower on Tuesday, but prices remained supported as market players sought refuge in the yellow metal amid steep declines in global stock markets.
Gold is up almost 4% since the year began as safe-haven demand was boosted amid a global stock market rout, worries over the Chinese economy and heightened geopolitical tensions.