China Trade Data may Suggest Weaker Copper Demand

Copper prices fell to their lowest level in four years on the Shanghai Futures Exchange on Monday, after tanking 5 percent, a move which analysts say underscores China’s bleak outlook following weak data and the country’s first ever corporate debt default.

The most heavily traded copper futures contract on the Shanghai Futures Exchange fell 5 percent – its daily limit – to 46,670 yuan ($7618) a tonne.

The move followed a steep fall in the price of copper futures on the Comex division of the New York Mercantile Exchange on Friday. May futures tumbled 4.2 percent to $3.0825 a pound, the heftiest one-day drop since December 2011, and the lowest level since July.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.