Copper futures are taking a break after four up-closes on the outlook of China’s factory output slowdown and how it may affect demand there. China is the world’s biggest consumer of copper at this point in history.
China’s statistics bureau showed industrial production in April rose at a slower pace than the month earlier – trailing analysts forecasts. China reportedly accounts for more than 40% of the world’s copper demand alone.
“Today’s report showing industrial production slowing in China have put the bulls on their heels while sending copper (futures) lower,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, regarding the current copper futures situation.
Copper futures trend remains up. With volatility and margin rates rather high at this time, I have to be selective with copper futures trades.
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