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Copper teeters near 6-year low amid China demand concerns

Published 12/11/2015, 08:05
Updated 12/11/2015, 08:09
© Reuters.  Copper prices struggle near 6-year lows
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Investing.com - Copper prices struggled near the lowest level since July 2009 on Thursday amid indications China's economy is losing momentum, fueling fears over slackening demand for the industrial metal.

Copper for December delivery on the Comex division of the New York Mercantile Exchange inched up 0.1 cents, or 0.05%, to trade at $2.219 a pound during morning hours in London.

A day earlier, copper fell to $2.197, a level not seen in more than six years, after the latest industrial production figures out of China added to concerns over the health of the world's second-biggest economy.

The soft data followed disappointing Chinese trade and inflation figures earlier in the week.

The downbeat reports reinforced the view that the economy remains in the midst of a gradual slowdown which will require policymakers in Beijing to roll out more measures to boost growth in coming months.

Prices of the red metal are down 25% since May as fears of a China-led global economic slowdown spooked traders and rattled sentiment.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.

Elsewhere in metals trading, gold prices struggled near three-month lows, as market players prepared for a hike in interest rates by the Federal Reserve next month.

Investors looked ahead to key U.S. data later in the day for further indications on the strength of the economy and the likelihood of a near-term rate hike.

The U.S. is to release a weekly report on initial jobless claims at 8:30AM Eastern Time, followed by data on job openings for September at 10:00AM.

Federal Reserve Chair Janet Yellen said last week that a December rate hike was a "live possibility" if justified by upcoming economic data.

Meanwhile, a host of Fed members including Yellen are slated to make appearances at the Federal Reserve's two-day conference on Monetary Policy Implementation and Transmission in the Post-Crisis period.

The Fed chief is scheduled to make the opening remarks on Thursday morning, while Fed chair Stanley Fischer is scheduled to deliver a speech on the transmission of exchange rates to output and inflation on Thursday evening.

Other Fed officials speaking Thursday, include New York Fed President William Dudley, St. Louis Fed President James Bullard, Richmond Fed President Jeffrey Lacker and Chicago Fed President Charles Evans.

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