Published on : May 21, 2015
The future of copper in London showcased steadiness to its lowest level in the last three weeks. This is prior to the vital manufacturing data on China; which will give insights of the economic slump of the top consumer of the metal in the world.
In the London Metal Exchange, three month data on copper did not show much change, which was valued at US$6,219 per tonne at 0028 hrs GMT, which touched US$6,194 on Wednesday, the weakest for the metal since April 30.
The preliminary HSBC Purchasing Mangers’ Index for China will be announced at 0145 hrs GMT. Going by the same gauge, the factory activity in China experienced fastest drop in one year as new orders shrunk.
More indicators of economic slump thrust Beijing to release fresh stimulus measures that could aid commodity prices.
Also supporting the sentiment possibly, Federal Reserve officers believed it would not be wise to increase interest rates in June, although most had the feeling the U.S. economy was all set to rebound after a dismal start of the year, as per minutes of the meeting in April for the policy meeting.
Two of the senior traders for metal have quit the global commodity merchant Trafigura in the last few weeks, whereas 14 other staff for metal working at various levels has departed since the beginning of the year, as commented by sources aware of the situation.
The European Parliament unanimously voted to put a ban on all products that contained ‘blood metals’, which were sold by African warlords. However, the statute is likely to be stopped by EU governments, which fear it would put an unrealistic pressure on businesses.