Copper posts worst drop in 19 months
Copper prices dropped on Wednesday after a jump in inventories and worries over the economic slowdown in China.
The drop in copper prices is the highest in last 19 months. bonaz capital
July copper futures settled 3.49% lower at $2.5435 a pound recording worst drop since September 2015.
Copper is now trading below its 50-day moving average for the first time since April 6 previous year. Seems the biggest worry is the slowdown in China economy.
The manufacturing data from China this week reflects below expectations figures raising concerns over the Chinese demand.
China is the biggest consumer of copper globally.
Copper is the key material used in home construction, industrial manufacturing and consumer goods around the world.
Market participants will have to watch out for metal stocks in today’s trade.