Data from China justifies Copper price correction – Commerzbank
The Copper price has recently fallen significantly from its record high at the end of October of just over $11,000 per ton, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
Copper prices retreat from October record high
"In our view, this represents a healthy correction, as supply concerns had already gone too far without any clear indications of a raw material shortage that could slow down metal production. According to data from the customs authorities, Chinese imports of Copper ore declined for the second month in a row in October. However, they are still at a high level."
"Overall, imports this year are still around 7% above last year's level. This suggests that Copper production will remain high, at least for the time being, even if it does not expand significantly further. At the same time, the continued subdued imports of unwrought Copper and Copper products indicate that there is limited demand for Copper beyond domestic production."
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FXStreet Insights Team
FXStreet
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