Copper was broadly trading within the 320 and 330 cents-per-pound range in September and October, but since the start of November the metal has been in decline.
The drop in the price of copper has been accelerated by a lack of clarity from the Communist Party of China during the week. Over the past few months investors have been concerned about China’s growth, in particular the credit market. Since the Third Peplum committee’s closed-door four-day meeting, a series of reforms have been expected, but since the government has failed to clearly outline these changes it has put further pressure on the price of copper.
Janet Yellen of the US Federal Reserve is currently testifying at a confirmation hearing before the Senate Banking Committee, in order to take over from Ben Bernanke in the new year. When Ms Yellen was appointed to the role of future chairwoman, traders assumed that tapering would not take place until the first quarter of 2014 but stronger-than-expected non-farm payrolls figure in October imply it could happen as soon as December.