Copper, which is industrial material and a leading indicator of economic activity, has for some time attracted more attention from investors, but in a negative aspect, suggesting that we are approaching a slowdown in the global economy. Prices have fallen for the first time since 2015 and start raising questions.
On Thursday, copper prices for December fell 17% compared to the same day last year, after a 20% increase for the whole of 2017, a 32% increase. The price has peaked at $ 3.30 per tonne in July, but by August the price has fallen to $ 2.56. "In the first six months of this year the price has risen, but in only two months, the price has fallen by 20%." - notes lead analyst for Banyan Hill Publishing, Matthew Badiali.
The collapse in copper prices, of course, is also a consequence of the US tariffs imposed on China in the trade war between them, which further threatens global growth. It is the precious metals that have already suffered the severe negative consequences and they have yet to affect the commodity market. The observed slowdown in the Chinese economy and the collapse of the local commodity market have greatly depressed the prices of copper, zinc and lead.
The recent reverse turnaround that has taken copper is not a good sign. Having the reputation of "Dr.Copper" for its foreseeable character for the global economy, investors are paying close attention to price developments. Tracking that is not filled with great optimism.
Source information: MarketWatch
Source Chart: MarketWatch
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