Copper down on fall in China Manufacturing Index. The metal fell by 0.5% to $7034 in morning trading at international market.
On Saturday China Manufacturing PMI fell below expectation at 50.5 from previous 51.0. World second largest economy has been showing negative results for last two months. Industrial metals got affected on anticipation of slow demand from world largest base metals consumer. According to Bloomberg China imported 10.080 million mt of copper ore and concentrates in December 2013 YTD. The country is having its own production of 6.802 mt YTD.
Majorly copper is used in manufacturing of automobiles, wires and electronic appliances.Fall in industrial production and money supply is expected to hinder demand for these products. This year Copper traders are bearish on the metal as high surplus may bring gradual price fall. LME Copper has lost 3.06% in one month and provided negative annual return of 34.95%.
Metal may get support if U.S. PMI will show better than expected result. Institute of Supply Management will release U.S. Manufacturing PMI today. The index is expected at 56.2 from previous 57.0.
The metal may enter into a long bearish trend until the U.S. and China start showing better industrial growth.