Copper futures extended lower on Wednesday on sluggish demand following China’s factory activity contraction in July. Moreover, rising inventories in exchange warehouses, strengthening US dollar, and downgrading of the US credit rating also added more pressure on copper prices. Although, expectations of end of interest rate hike cycle in the United States restricted further fall in copper prices to some extent.
Copper futures for September delivery lost $0.0650 to settle at $3.8435 a pound on the Comex metals division of New York Mercantile Exchange. Copper on the London Metal Exchange was down by 1.41 percent at $8,509.50 a ton.