Copper prices fell to a minimum of 2009. The December Comex futures reached $ 2.2095.
Weak statistics from China continues to push prices. Chinese economy consumes 40% of world Copper consumption. Production volume in China again proved weaker than expected (5.6% compared to expected value 5.8%), which raises concerns for permanent retardment. Inflation is not pozitive too. The probability for demand to decline is the most realistic short-term scenario.
After correction last week, when the mining giant Glencore announced cuts extracted quantities, the trend of price decline again. The companies constantly trying to reduce spending levels and ratios profitability, but so far with variable results.
There may be more temporary corrective movements, but the trend remains down and corrections can be used for new short positions.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.