According to trading, the December copper futures on the Comex rose in price up to 2,37 per pound on concerns of investors that the slowing Chinese economy would reduce demand for the metal.
MOSCOW, 20 Oct. Copper prices Monday resumed weak growth on investor concerns that a slowing Chinese economy, the world’s largest consumer of the metal, will reduce demand and in anticipation of new government measures to stimulate economic growth of the country, according to AFP.
As at 17.03 GMT December futures for copper on the Comex rose in price by 0.11% to 2,37 per pound (about 0.45 kilograms).
At the end of trading Monday the price of a ton of copper on the London metal exchange (LME) for delivery in three months fell by 1.49% to $ 5206 per ton. Price per ton of aluminum fell 1.46% to 1549,50 dollars, zinc — on 0,39%, to $ 1794.
On Monday, investors with pessimism have apprehended the data of the national Bureau of statistics of China. The Department reported that the GDP growth of China in the third quarter in annual terms it stood at 6.9% vs. 6.8%. Despite the fact that the rate was better than analysts ‘ forecasts, the growth of the economy still shows the slowest pace since 2009. Besides the country’s industrial production in September rose yoy by 5.7% against the forecast of 6%. In August the growth was of 6.1%.
China accounts for about 45% of global demand for copper and the markets are especially sensitive to any fluctuations in demand of the PRC. “Investors understand that despite the reduced production, the problem is not solved yet. Product still too much”, — quotes Agency Bloomberg strategist at INTL FC Stone Edward Meir (Edward Meir).
The prospects of the Chinese economy continue to bother investors, but some analysts are moving towards a more positive attitude. They believe that the stimulus measures of the Chinese government should provide modest support for the economy.