Copper Prices Fall on Signs of China Slowdown
September 15 2017 - 12:32PM
Dow Jones News
By Ira Iosebashvili
Copper prices fell to their lowest level in more than a month
Friday as investors locked in gains in the metal on anticipation
that China's economy will slow in the next few months.
Copper for December delivery was recently down 0.6% at $2.9395 a
pound on the Comex division of the New York Mercantile Exchange,
its lowest price since Aug. 10.
China's August industrial production was the weakest since
December, while investment growth in the year to date hit its
lowest level since 1999, data showed earlier this week. Economic
reports in July also undershot expectations.
Copper is heavily used in construction and manufacturing, making
its price sensitive to signs of flagging growth. China's economic
health is particularly important to copper investors, as the
country accounts for some 45% of global demand for the metal.
"We continue to expect China's economy to slow later this year
and the latest activity data add to evidence that this is already
happening," analysts at Capital Economics said in a note to
clients.
After a sharp rally this summer, prices for copper and other
metals "look increasingly vulnerable to a correction over the
coming months," the firm said.
Despite falling in recent days, copper prices are still up
around 13% since June.
In precious metals, December gold was recently down 0.3% at
$1,326 a troy ounce.
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
(END) Dow Jones Newswires
September 15, 2017 12:17 ET (16:17 GMT)
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