Copper falls below 7000 USD per ton

For the first time since October 2011, in London, copper fell 4% to a level below $ 7,000 per ton. This happened due to anxiety about the state of the world economy. Three months, copper on the London metals exchange fell and reached a session minimum of 6800 USD per ton.

Judy Zhu, an analyst at Standard Chartered in Shanghai, said that the appetite for industrial metals was undermined by a slowdown in China and intermittent recovery in the United States. Futures for gold in the United States fell by more than 2% to the session minimum of 1.335.60usd per ounce. Gold was badly damaged by the uncertainty of the US federal reserve system and the desire to maintain its policy of cheap money, which encourages investors to get rid of their assets.

Official data showed that the restoration of China’s economy unexpectedly slowed down in the first 3 months of 2013. The growth rate rolled back up to 7.7% from 7.9% PACE in the last quarter of last year. Ms. Zhu said that in general, the fundamental demand for copper in China was not bad. The reserves of the media manufacturers that are used in air conditioners are growing, but they are not yet fully equipped, leaving a place for further purchases. Some of them buy copper to replenish their stocks. And consumers are quite satisfied with current prices.

The losses in the copper LMe prompted to sell other most traded metals. Since August last year, copper contracts on the Shanghai futures exchange decreased by 4%, CNY 50 530 per ton. The most active contracts of aluminum and zinc on the Shanghai futures exchange fell to the lowest level in four years. Nickel sank to the very weak position since July 2009.