Copper Below $2.35 as Confidence Vanishes

Copper tumbled to a six-year low on Monday, as weak manufacturing data and the selloff in Chinese equities continued to weigh on industrial metals.

Three-month copper prices traded erratically on Monday on the London Metal Exchange, falling to $5,142 per ton—a low not seen since July 2009—before paring some losses in the afternoon to trade around $5,176.   This came after the final reading of the Caixin China manufacturing purchasing managers index showed a two-year low of 47.8 in July.

“As with many other China-exposed commodity markets, copper’s trade has been undermined year-to-date by surprisingly subdued economic activity in China,” said commodity analyst at Morgan Stanley, Susan Bates, in a note to clients on Monday.