Copper traders and analysts are the most bearish in almost 2 months because of mounting concern that Europe’s debt crisis will curb demand in the region that accounts for about 19% of global consumption.

Eleven of 23 surveyed by Bloomberg expect the metal to decline, the second consecutive week that their outlook worsened and the highest proportion since September 23rd 2011. The last time so many were bearish, prices dropped 4.6% the following week.

The commodity fell more than 20% into a bear market since reaching a record in February on signs that economic growth is slowing. European industrial production fell the most in 2 1/2 years in September as governments grappled with sovereign debt crises that have toppled governments in Greece and Italy. Copper demand contracted 0.9% in 2008 as economies contended with the worst recession since World War II.

Mr William Adams head of research at London based Basemetals said that “There’s a strong chance of Europe going into a recession. Asia is getting more worried that the slowdown in Europe will mean demand for their exports will be hit and therefore that’s going to impact demand for their industrial production.”

A Bank of America Corporation index showed that copper declined 22% to USD 7,511.5 per tonne on the London Metal Exchange this year, heading for the biggest annual drop since 2008. The Standard & Poor’s GSCI Index of 24 commodities advanced 3.5%. The MSCI All Country World Index of equities retreated 11% and Treasuries returned 9.2%.

(Sourced from Bloomberg)