Worries about Chinese credit markets and weaker international demand caused copper futures to fluctuate March 12 after Comex prices hit a nearly four year low a day earlier.
The May-delivery Comex copper contract fell to $2.952 per pound March 11, the lowest level since July 2010.
The bond default has created downward mementum on prices, CPM Group analyst Catherine Virga said. “There’s been a buildup in china’s bonded warehouses, but it is not as large as it has been in recent years, and combined with the price momentum and weaker demand we think price could go lower.”
Excerpts from American Metal Market March 13, 2014
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