Copper fell the most since Nov. 21 in London as investors speculate demand for the red metal will decline.
Investors are concerned that an economic recession in the U.S. will not favor demand of copper since the country is the second largest consumer in the world. In each of the past three U.S. recessions copper has dropped.
Copper for delivery in three months fell $266 or 3.7 percent to $6, 875 a metric ton at 5:01 p.m. on the London Metal Exchange. In New York electronic trading today copper fell 4.19 percent.
A drop in equity markets may affect copper demand. The Morgan Stanley Capital International Index declined for a fifth day and Europe's Dow Jones Stoxx 600 Index experienced its lowest slump since the Sept. 11 attacks in 2001.
In addition, a decline in copper inventories in the LME is contributing to losses. Copper inventories fell today to 180,900 metric tons, the lowest level in since November 2007.
U.S. markets are closed today for Martin Luther King holiday.