Copper sinks to a low for the first time in about 4 months
Copper futures fell below £1 = $4.15 on Wednesday and sank to a low level for the first time in about 4 months. This is because demand concerns in China, which is the largest consumer country, continue to put pressure on the market.
Analysts pointed to weak GDP data for the second quarter and a protracted real estate crisis.
The 3rd National Congress, which came to an end the other day, was not a major policy shift to deal with economic issues, and since they insisted on continuing, it was not possible to excite investors.
Investors are paying attention to the latest data on manufacturing and service industries to be announced next week, and are trying to further determine the size of the world's second-largest economy.
Meanwhile, in India, the government has announced that it will continue spending on infrastructure, so there is a possibility that copper prices will be supported by improved sentiment.
On the supply side, copper stocks in LME warehouses have reached a high level since 2021/9, and stocks in bonded warehouses in China have reached a high level since 2023/5.
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