Copper slumps to fresh 9-week lows on weak fundamentals
|Copper futures on Comex extend sell-off into a third straight session this Wednesday, amid oversupplied markets and falling demand for the red-metal from the world’s largest consumer of the metal.
Currently, copper trades -0.38% lower at 2.107, hovering within a striking distance of fresh nine-week lows struck at 2.100 earlier on the day. Copper remains weighed by fundamentals, with the stockpiles trending at the highest levels in almost seven months, suggesting that the market is amply supplied.
While the latest data from the China customs revealed that the world’s biggest producer and user of refined copper, cut imports to the lowest level in 17 months amid low-season demand and rising domestic production. Exports jumped 76% from a month earlier.
Further, broad based US dollar strength on the back of stronger new home sales data, also weighs down on the USD priced-in red metal. All eyes now shift to the Fed Symposium starting tomorrow, for fresh USD moves, which will eventually impact copper prices.
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