Copper price plunges amid rising inventories
Copper prices sink to their lowest level in more than two months, as some investors take profits following data showed an inflow into LME warehouses.
Comex copper for March delivery currently -4.4% at $2.952/lb. after falling below $3/lb. for the first time since early October and down more than 7% from three-year highs also reached last month.
After surging in response to strong Chinese economic data earlier this year, some investors now worry that a slowdown in China - which accounts for ~50% of the world’s copper consumption - could weigh on prices moving forward, and has prompted some speculators to take chips off the table, says Jefferies analyst Christopher LaFemina.
A stronger dollar also is weighing on prices by making copper and other dollar-denominated commodities more expensive for overseas buyers.
Source: Reuters