China demand fears take toll on Copper
13/01/2015 09:50
Copper futures slumped in the domestic market on Monday as investors and speculators exited positions in the industrial metal as deepening factory-gate deflation in China, the world’s biggest metals consumer, threatened to curb demand for copper.
Producer prices in China extended a record run of declines, tumbling by the most in two years in December 2014, down for the 34th straight month, declining 3.3 per cent from the same month a year ago.
Deutsche Bank predicted the slowest Chinese copper consumption since at least 2010. Societe Generale pegged the global supply glut at 380,000 tons in 2015 amid weak Chinese consumption.
A US dollar near a 12-year high curbed the demand for copper as an alternative asset. Stronger greenback makes copper more expensive for those holding other currencies, thus dimming demand.
Copper may rebound today after a jump in Chinese exports last month eased concerns over the country’s economic slowdown.
At the MCX, Copper futures for February 2015 contract closed at Rs 377.1 per 1 kg, down by 1.32 per cent after opening at Rs 381.05, against the previous closing price of Rs 382.15. It touched the intra-day low of Rs 374.50 till the closing.
13/01/2015 09:50
Copper futures slumped in the domestic market on Monday as investors and speculators exited positions in the industrial metal as deepening factory-gate deflation in China, the world’s biggest metals consumer, threatened to curb demand for copper.
Producer prices in China extended a record run of declines, tumbling by the most in two years in December 2014, down for the 34th straight month, declining 3.3 per cent from the same month a year ago.
Deutsche Bank predicted the slowest Chinese copper consumption since at least 2010. Societe Generale pegged the global supply glut at 380,000 tons in 2015 amid weak Chinese consumption.
A US dollar near a 12-year high curbed the demand for copper as an alternative asset. Stronger greenback makes copper more expensive for those holding other currencies, thus dimming demand.
Copper may rebound today after a jump in Chinese exports last month eased concerns over the country’s economic slowdown.
At the MCX, Copper futures for February 2015 contract closed at Rs 377.1 per 1 kg, down by 1.32 per cent after opening at Rs 381.05, against the previous closing price of Rs 382.15. It touched the intra-day low of Rs 374.50 till the closing.
