Shanghai Copper is down 4.6%, hitting fresh cycle lows not seen since March 2009. No clear catalyst is evident for now aside from stronger USDollar, Codelco’s cuts, and more chatter of CCFD unwinds. If COMEX Copper holds these losses, it will be down for 10 straight days – the longest on record from what we could tell.
Copper is crashing in China…
To lows not seen since March 2009…
The US Dollar is pushing higher, weighing broadly on commodities. Also continued forced liquidations in CCFDsis not helping as hope for a low evaporates. However, it appears the Codelco cuts are the most prescient…
Concerns metals demand is ebbing deepened as Codelco, the biggest copper producer, cut its surcharge for sales to China by 26 percent next year, according to two buyers. The reduction highlighted waning consumption in the Asian country.
Obviously the tragic developments in Paris have caused a capital flight out of metal and into safety. Secondly, collapsing physical premiums for metal being imported into China really underscores how anemic demand is there.”
China is facing an unprecedented drop in refined copper imports as a slowing economy erodes demand, according to one of the country’s largest buyers. Shipments to the country will shrink 10 percent next year, Stephen Huang, chief executive officer of trading house Arc Resources Co., said in an interview.
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