NEGOTIATOR’S TAKE: Industrial metals are at 6-year lows – a great time to approach suppliers to lower prices.
Copper futures dipped below $5,000 a metric ton Tuesday (August 18, 2015) for the first time since the financial crisis, dropping under a key level in a market that has been hit hard by concerns over the Chinese economy and by uncertainty for a metal widely regarded as a barometer of global economic health.
Fear of falling demand in China weighs on the metal
Copper’s decline comes as all metal prices continue their steep falls from the boom peaks of 2011. As with other base metals, copper has suffered from the oversupply that followed the boom and from concern over future demand from China, which consumes around 45% of the metal. While many analysts say faltering Chinese demand will continue to lead copper lower, others predict prices will rise by the fourth quarter because Chinese buying will pick up when global supply begins to fall….Read the rest of this ProPurchaser sourced article, HERE.
Source: The Wall Street Journal, August 2015