US, China and EU data drive copper to lowest in 3 months

China , Copper , Europe , USA Nov 14, 2013 No Comments

CopperCopper fell 2.3% on Wednesdays to $3.1595 a pound on the Comex division of the New York Mercantile Exchange, the lowest price since July 31. So far this year, the price declined 12 percent.

Copper futures fell to a three-month low as investors bet that the economic policies laid out by China‘s leadership wouldn’t do enough to boost growth in the world’s top metals consumer.

Copper has been sliding since Tuesday after China’s Third Plenum — a four-day meeting that sets government economic policy for the world’s second – largest economy—released a broad blueprint calling for markets to play a more “decisive” role in economic matters.

Copper also was under pressure from lingering concerns that the Federal Reserve may start to rein in its economic stimulus measures. On Tuesday after the close of Comex copper trading, Federal Reserve Bank of Atlanta President Dennis Lockhart said the central bank could start reducing its stimulus in December.

Separate reports on Thursday showed euro-zone growth slowed to a near-standstill during the third quarter, U.S. exports fell in September, and more people than expected applied for unemployment benefits in the U.S. last week.

Copper is used in a wide range of products, including appliances, consumer electronics and power cables, making prices sensitive to readings on economic growth. The euro-zone countries as a group and the U.S. are the two largest copper consumers after China.

via Copper at 3-Month Low on China Growth Fear – WSJ.com

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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