Published on : Jun 04, 2015
China has recorded to have entered seasonally low period for demand for copper. However, the easing measures in the country are supporting the economy. However, China is slated for aluminum imports due to attractive prices.
Copper dropped below US$6,000 per tonne, which is a six week weak as recorded on recently. This is accounted to lackluster demand in China, which is the world’s biggest consumer of the metal, and risk averse in the larger commodity and financial markets.
A deluge of data that is due from China next week, may however, showed some signs of recovery, thanks to steadying stimulus measures, but analysts add more support is needed to offset the impact of a property downturn and unsteady exports.
For remaining part of the month, it is quite likely to be range bound in copper having a downside bias. The reason can be accounted to be weak premiums and high scrap demands and it is quite likely the whole summer may pass before demand improves, as commented by metals analyst at Nomura.
London Metal Exchange recorded copper dropped at 1.1% which was US$5,946 per tonne at 0959 GMT- which is the weakest recorded by the metal since APRIL 24. The metal is all set to record three weeks of continuous losses, with the recovery which was seen in January come to have stalled.
In the larger markets, persistent sell-off in the bond markets with financial markets left with short confidence, with stock prices dropping globally, as also oil prices dropped prior to OPEC meeting on Friday.
The strongest quarter for copper in China is passing its peak for which factories are eyeing a summer of production slowdown, which will lead to lower consumption of the metal.