Copper futures tumbled the most in seven months as signs of muted inflation signaled lower metal demand in China, the world’s top user, and the U.S., the second-biggest.
In September, Chinese consumer costs rose at the slowest pace since January 2010, and U.S. wholesale prices unexpectedly fell for the first time in a year, separate reports showed today. Copper fell 6.1 percent in the third quarter amid concern that supplies will top demand.
The global market will swing to a surplus next year, the International Copper Study Group estimates. Even with signs of slowing demand, mining companies are spending more to increase production. Inventories monitored by exchanges in London, New York and Shanghai increased in five of the past six weeks.
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.