With Chinese Growth Seen Slowing, Copper Futures Near Five-Year Low

Copper futures is realizing the repercussions of the world’s largest industrial metal consumer’s industrial production slowing down. China’s industrial growth has seen its smallest gain in almost 15 years and copper futures is reflecting revelation currently down 900 points in New York’s Commodity Exchange.

Chinese government data reports last year’s metal-consumer’s earnings may have increased, albeit a meager 3.3%, but last month profit slid by 8% – the third straight month of declines. To make matters worst for copper futures, here in the US durable goods orders also fell for the fourth consecutive month and the US is the second biggest user of copper.

Copper prices are getting a one-two punch from the world’s top end users of the (industrial) metal,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, shared his fundamental analysis insight regarding the current copper futures situation. Medina added, Copper futures seem to be looking ahead to demand and it’s just not there.”

The trend for copper futures is nothing but down with new lows made just yesterday. We had a couple of copper futures trades earlier this month, but I need volatility to contract some before getting short this market once again.

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