US copper closes sharply lower on demand worries

By Carole Vaporean

NEW YORK, Dec 15 (Reuters) - U.S. copper futures sold off heading into Monday's close as demand concerns arose following a drop in industrial output, a drop in oil prices, and sliding U.S. share prices, traders said.

* By the close, copper for March delivery HGH9 lost 2.35 cents, or 1.65 percent, to $1.4050 per lb on the New York Mercantile Exchange's COMEX division.

* The range extended down to $1.4060 by the end from a session high at $1.4890.

* COMEX estimated final copper futures volume at 10,503 lots.

* Demand concerns kept pressure on copper prices throughout the session - traders.

* Oil prices fell more than 2 percent, pulling copper and other industrial metals down with it - traders.

* Crude oil dropped on deepening economic worries.

* Toyota Motor Corp (7203.T) suspended work on its newest U.S. auto plant, further worrying copper investors.

* Sliding U.S. equity indexes added to concerns about U.S. economic growth and weighed on copper prices.

* Copper had been underpinned by dollar weakness for much of the session - traders.

* The dollar tumbled to a two-month low against the euro as some investors expect the Federal Reserve will cut interest rates to near zero this week.

* A downturn in U.S. industrial production, along with other signs of economic slowing also damaged copper upside attempts -traders.

* November industrial output fell 0.6 percent, less than the 0.7 percent forecast decline. U.S. production rose by 1.5 percent in October.

* A gauge of manufacturing in New York State hit a record low in December, prompting analysts to declare the U.S. manufacturing sector was in recession.

* Copper was helped overnight by China's State Council announcement of a series of measures aimed at boosting growth.

* Elsewhere, the value of copper exports from top producer Chile fell 32 percent in November compared with November last year following a steep drop in copper prices.

* A large addition of copper stocks also pressured prices - traders.

* London Metal Exchange copper warehouse stocks jumped by 8,000 tonnes to 314,825 tonnes on Monday.

* COMEX copper stocks rose by 1,359 short tons to 19,665 short tons as of Friday.

* Chartists expect several weeks of sideways action that maintains levels above the 3-1/2 year low hit on Dec. 5, as many players wind down trade for the year - analysts.

* London Metal Exchange copper for three months delivery finished the Monday kerb session at $3,165 a tonne, down from $3,175 a tonne at Friday's close.

Last Updated: December 16, 2008 04:42 Beijing Time