Copper prices futures fell -2.5% today and closed at US$ 3.10 per lb, locking their second straight weekly drop.
Investors and analyst say copper's latest leg lower was prompted by China's decision overnight to shut down 654,400 metric tons of outdated copper-production capacity by the end of September. The move is part of a broader government effort to upgrade and consolidate Chinese industry.
China accounts for about 40% of the world's copper demand, and investors have been worried that slower purchases by factories and copper refiners there will lead to lower global prices of the industrial metal.
