Mining Profits...Investing In Industrial Metals

Copper futures in New York were down 2 percent, but managed to bounce from 8-1/2-week lows in early trade on Wednesday, as the ongoing weakness in commodities prompted more long-liquidation, sources said.

"The tumult in the energy markets is undoubtedly casting a shadow on metals, as the steep decline of the past few days is most likely inducing many funds to raise capital by paring back length across the board," said Edward Meir, metals analyst with Man Financial.

By 10:30 a.m. EDT (1430 GMT), copper for December delivery was off 6.15 cents, or 1.8 percent, at $3.3140 a lb on the New York Mercantile Exchange's COMEX division, trading from $3.3860 to $3.2550, its weakest level since late July.

"I think the bargain hunters are out now after the collapse this morning," said a trader down at the floor of the exchange.

Spot September slipped 8.55 cents at $3.29, dealing between $3.27 and $3.30.

COMEX copper volume at 9:00 a.m. was estimated at 3,000 lots.

"Over the last week, commodities have been under pressure...base metals tried to separate themselves, but any rally was sold into and the market is making lower lows each day, which is not a very good sign. But, I think these markets are overdone and some good value can be found here," said one COMEX dealer.