Friday, 03 April 2015 11:13

Contraction in China Manufacturing Index May Adversely Affect Copper Prices

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Copper continues fall for last two weeks on concern of China.During last two weeks the metal dropped by 3.02% from $7348 at London Metal Exchange.

Markit released HSBC Final Manufacturing PMI which has shown contraction after 5 months. The index dropped to 49.5 from last month 50.5. It looks like the manufacturing industry has left the fast track growth since the end of 2011.

Fall in manufacturing index indicates low production of appliances and automobiles at China for which copper is imported. However, expansion of electricity grid may little support metal prices.

According to Bloomberg compiled data China copper demand has remained near to 8.919m in November, 13 highest in the world. But during this year due to slow economic growth demand for this industrial metal may fall.

According to Bloomberg forecast the metal is expected to reach at the price of $7193 in the first quarter and expected to fall gradually. The metal may find support on Indonesia export ban.

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