Weak demand, declining trading activities and China’s poor data are pushing copper prices towards a low last seen in mid-January.
What’s next? Is the red metal falling below the January trough?
“Copper price dropped to a low never seen since 2009 in January, but this may not be the bottom for 2015 if you look at the data for construction,” said analyst of Everbright Futures.
The analyst explained that although home sales picked up, housing starts remained weak, presaging poor copper demand in the latter half of the year.
“Falling fixed asset investment means the economic growth will be less dependent on investment, which is certainly bad news for copper market,” analyst from Guotai Junan Futures told SMM.
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