Current trading outlook of the demand for copper slowing down in lieu to the slump in the economy of the world’s largest consumer, there was some downside on the copper futures seen on 31th March 2014. Adding to the decline was the gold futures, which saw its drop for its first month this year. Interestingly, Silver moved up to the levels of its earliest monthly drop during the start of the year.
Copper futures for settlement in May declined on the Comex division of the New York Mercantile Exchange sliding down by 0.46% and was seen trading at 3.028 US dollars per pound.
Helen Lau, a commodity analyst at UOB Kay Hian Ltd. in Hong Kong, stated “Copper has more downside risks,” as cited by Bloomberg. She further expressed her views stating “The slowdown in China will continue with a crash unlikely, which will mean government stimulus will be limited”.
With the staggering economic growth in China, the world’s largest consumer of copper, speculations are on for a drop in prices through June.
With the staggering economic growth in China, the world’s largest consumer of copper, speculations are on for a drop in prices through June.
The global surplus of copper is estimated by metals researcher CRU to reach a whopping 140 000 tons in 2014. In addition to that the decline in consumption by China will leave a big gap in demand and supply.
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