Copper remains near four-month lows

The copper price, along with that of many commodities, has been subjected to a steady stream of economic data from China over the last five months which has reflected cooling demand.

Although the Chinese economy is comparatively healthy in comparison to most of its global rivals, it is not what it used to be. It is no surprise that with a broader approach to overseas trading China has gone through an extensive period of growth, not just in the private sector but also to its infrastructure.

In the construction of high-rise towers, train lines, motorways and airports, a sizeable quantity of commodities are required and this growth had helped the underlying commodity price. Many have called this current downturn in China as the turning point for the commodity markets.

Recent Chinese data has shown that demand for copper is now at a nine-month high, which has caused some confusion within commodity markets as it flies in the face of the trend of economic data. Commodity and specifically copper traders will now be trying to gauge which is the more accurate reading of the market and it will be interesting to see if today’s 0.75% rise in the copper price is maintained or just a blip on the southerly trajectory.

High Grade Copper (Sep 13) chart

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