The Star Early Edition

Still no end in sight for copper’s price slump

- Bloomberg

COPPER slumped to the lowest level in more than six years as metals dropped after muted Chinese inflation data increased concern about slowing growth in the world’s biggest consumer. BHP Billiton, the largest miner, fell to a fresh decade-low in Sydney. By 5pm BHP Billiton was trading at R158.09 on the JSE.

Copper, the metal used in cables and wires lost as much as 1.5 percent to $4 416 (R71 983) a metric ton and traded at $4 450.5 by 11.52am in Shanghai.

Prices extended a 4.7 percent decline last week triggered by swings in China’s financial markets and fears the country’s slowdown would hurt demand. In the latest data, inflation in December stayed at about half of the government’s 2015 target.

“It’s more of a knee-jerk reaction to the concerns that China is obviously slowing, and concerns about the stock market,” Jonathan Barratt, the chief investment officer of Ayers Alliance Securities, said.

“All of those things have created an uncertain feeling of what we’re seeing out of China. We’re of the opinion that the lower prices go, the stronger they will bounce back.”

Metals have lost most of the gains they made toward the end of last year, with the London Metal Exchange index of six contracts down 4.3 percent last week, the most since May. Bloomberg’s world mining index of 80 equities extended its decline to the lowest since 2004 yesterday.

Nickel dropped 2.7 percent to $8 330 a ton.

Newspapers in English

Newspapers from South Africa