Copper price on the international market has soured to lowest levels this year, dropping by a whopping US$216.00 to trade at US$5,914.50 a tonne, apparently due to falling demand from China.
According to Cavmont Bank Zambia daily market report the same fate was suffered by oil prices which have plunged by US$2,29 to trade at US$46.07 a barrel.
The bank has further reported that the price of gold to the contrary has risen by US$17.80 and is now selling at US$1,239.00 an ounce
And Bloomberg reports tht copper tumbled the most in almost six years to below $5,400 a metric tonnes as speculation that demand for raw materials won’t be enough to eliminate a supply glut triggered a sell-off in industrial metals.
Copper is falling faster than most other commodities because “it’s the one that is played by the macro investors and by people who are looking at the broader picture rather than commodity fundamentals.”
Copper for delivery in three months on the London Metal Exchange dropped as much as $506.75 a metric ton to $5,353.25, the lowest intraday price since July 2009.
The metal was trading 6.3 per cent lower at $5,492.75 a tonnes in Hong Kong.
Copper slumped as much as 8.7 percent in London and fell to the daily trading limit in Shanghai.
The world economy will expand 3 percent in 2015, according to a World Bank report, down from a projection of 3.4 percent in June.
Demand for the metal in China, the world’s biggest user, is forecast to slow this year while supply rises globally. All other metals on the LME declined today, with nickel dropping to the weakest since February 2014.
Commodities have collapsed to the lowest level in more than 12 years, led by a rout in energy prices, after a decade-long bull market led companies to boost production and a stronger dollar diminished their allure to investors.
Oil’s 60 percent decline since last year’s peak is reducing energy costs for mining companies and bolstering speculation they’ll boost output further. Copper is the worst performing non-energy raw material on the Bloomberg Commodity Index (BCOM), which fell today to the lowest since August 2002.
“People have seen oil prices decline so much and now they’re targeting other commodities,” Ivan Szpakowski, an analyst at Citigroup Inc. in Hong Kong, has said.