Copper prices dropped significantly by the end of may
Copper prices dropped significantly by the end of may. Futures contract for copper for settlement in July traded for $2,6670. This is a very difficult area for copper.
A minimum of 3 January of the current year is around $2,5600, and the chance to test grow day by day. The previous driver in the copper does not work: before prices went up as the complications of trade relations between the US and China. High in copper happened on April 17, but now all risks are already in prices and the “bears” took over.
China is the obvious world leader in copper imports, and any signal to slow down the growth of industrial production or the economy in General will put pressure on the price of the metal. Trade agreement between the countries that hung in the air, is a big risk for the copper market and trend down channel can be enhanced.
In addition to China, the sector of copper and the other problems. For example, Zambia, which last week was captured by the copper mines. Zambia — a strong player in the “copper” field, it produces about 4% of the total. The decline in production increases the risks of supply disruption — it can seriously affect the already narrow and volatile market.
While copper clearly looks down, and shopping here makes sense to wait.
“Information-analytical center “Alpari”