Copper Decline Due To Weak Chinese Data

- Nov 16, 2017-

According to Dow Jones November 14th news, New York copper fell on Tuesday, the Chinese economic data released earlier than expected, warming demand worries.

COMEX copper contract fell 5.15 cents, or 1.7% in December, and the settlement price was $3.0650 per pound.

Copper prices rose about 25% this year to the highest level in nearly three years, strongly supported by China's demand. China is the world's largest consumer of metals.

Analysts have warned, however, that the slowdown in the economy is likely to drag down copper prices. China accounts for half of the world's total copper consumption. Industrial output and fixed asset investment growth slowed in October, according to data released on Tuesday. Industrial output data is the second lowest level in the year.

Ole Hansen, a commodities strategist at Saxo Bank, says copper prices have fallen because of poor output and consumer data in china. These two data were weak in October, exacerbated bad popularity.

Hansen said that with the coming of winter, some investors worry that the copper price rally this year may not continue. Winter is the traditional off-season of China's demand. He said that the credit crunch and the slowdown in the real estate market also indicate the cooling of China's economic growth.

Investors will continue to focus on China's economic data, which has supported industrial metals prices this year because of strong demand and expected supply shortages.