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Copper Stabilizes After Suffering Heavy Losses

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Copper prices stabilized this Wednesday after a strong decline, while other metals fell because of pressure applied by China.

In 2015 there were predictions regarding silver, copper and other metals increasing during the next years and right now it is a top producer. However, prices dropped in the last quarter. Investors are still resilient to the idea of investing in copper since it could have a weak first half of 2018 and because investors sought to reduce long positions before the end of the year.

According to Ole Hansen, head of raw material strategies from Saxo Bank, a slowdown in China is expected during winter since the Government is looking to control financial risks, potentially having a (negative) impact on copper demand. Also, there is speculation on the long positions in metals in case the country runs into some risk aversion. That could bring prices down due to the need for less exposure at this time of year.

In November Zinc closed down 0.9% to US $ 3,085 per ton after marking its lowest level since mid-October, while nickel dropped 0.6% to US $ 10,805 after having an unseen decrease in early October to US $ 10,755 per ton.

Zinc fell below its 100-day moving average, which sent a bearish signal to markets, while nickel remained below that technical level after it drilled it on Tuesday, when it fell 4.6%. Aluminum fell 1.7% to US $ 2,018 after marking its lowest level since early August at US $ 2,015.50, and tin lost 0.2% to US $ 19,480. In contrast, lead rose 0.3% to US $ 2,507.

Do you think it is a good idea to invest in copper right now?

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(Cover Photo Flickr)

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A native of Zulia, Venezuela. Aris joins linvinginperu after moving to Lima to work as a content creator. Bachelor’s degree in accountancy and 2 years of experience as a professional article writer and community manager. Watching movies and series, reading books and riding the bicycle is some of his preferred activities. Passionate about the idea of traveling the world to learn more about other cultures. Contact: aris.sandrea@gmail.com