Copper — 2nd Day of Losses on China’s Weak Growth Outlook
Copper continued its Friday’s way down today and set a new local minimum by declining to the lowest level since September 13. The metal fell along with palladium, crude oil and other industrial commodities.
Weak expectations for China’s economic growth prompted speculators to cut bets on assets that are closely tied to output expansion. A slump in auto sales and shipping transportation, albeit potential, has a strong implication for hurting the demand for copper and palladium. Additionally, slow housing development in China may turn out as an additional press on copper prices as the metal is crucial in real estate and supporting infrastructure construction.
Analysts also point at Europe and the eurozone’s debt problems that will haunt the markets for years to come. Further slowdown or more consumers’ apathy in the Old World would provide a really hard landing for Chinese economy, which is one of the biggest commodity importers and consumers in the world.
Copper December futures went down from $3.7733 to $3.7295 per pound as of 17:13 GMT on CBoT today. The daily low was at $3.7115 per pound today.
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