Moody''s downgrades base metal outlook to negative

NEW YORK — Moody''s Investors Service has changed its outlook for the global base metal industry to negative from stable, blaming a slowdown in economic growth.

"Recent economic statistics, including purchasing management indexes for the U.S. and China indicate a contraction in the global economy," Carol Cowan, a Moody''s vice president-senior credit officer, said in a statement. "With China accounting for at least 40% of base metal demand, its purchasing appetite is a key factor in metal price movement."

Base metals prices will remain range-bound, with a bias to the negative, although a broader price collapse as seen in 2008 is unlikely, Moody''s says.