Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

All Eye’s Are On Copper, A Serious Bellwether To Watch

admin by admin
April 11, 2012
in Uncategorized
0
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Although Reuters reported earlier in the month that China’s demand for copper would grow by at least 6% in 2012 according to Wei Jianghong, chairman of Tongling Nonferrous Metals, seems to be an optimistic piece of disinformation the countries leaders are known for. It seems there is more to the story as the ‘facts’ say otherwise.

Copper slipped on Tuesday and again today to further the fears of China’s economy slipping and creating a negative issue for the US and European markets. Although copper prices are not as low as the October lows in 2011 of 3.10 the downward trend of the past several sessions is still disturbing and warning of potentially more weakness to come. Adding to investors fears are several Chinese companies have missed their earnings targets as reported in the Financial times recently “as bleak demand expectations from Chinese copper consumers also discouraged buying”.

Copper May Decline for Third Session on Chinese Demand Concern

Copper may fall for a third session in New York on concern about the strength of demand in China, the world’s biggest consumer of the metal. Figures due April 13 may show China’s economy weakened from a year earlier in the first quarter, a Bloomberg News survey of economists indicated.

“Copper broke yesterday below important support levels,” William Adams, an analyst at Basemetals.com in London, said by phone. “The overall view is that things are slowing down again.”

@ino:
Copper falls again as economic hopes dim, gold up

Copper prices are ending lower again as more signs of trouble in Europe’s debt crisis sent stock markets plunging on both sides of the Atlantic. Copper fell 7 cents, or 1.9 percent, to $3.65 a pound Tuesday. It also lost 2 percent the day before.

The latest worry for copper was a spike in Spain’s borrowing costs.

That led investors to dump stocks in Europe and the U.S. and drive money into safe harbor investments like the dollar, Treasury’s and German bonds. Copper, which has a huge variety of uses in construction and manufacturing, also sank because its price is closely tied to economic growth around the globe.”

This morning copper was trading in the 3.63 range while investors are still getting over yesterday’s general market weakness and decline. The European continuing financial woes are apparently adding to concerns that falling copper prices are just the beginning of a weakening Euro. Not helping the matter is the uncertainty of Spain, Italy, Portugal and Greece being able to remain solvent.

Copper was trading as low as 3.63 this morning and is currently at 3.6550.

@stockcharts:______

Copper Another Victim of China Worries – WSJ.com

Copper futures sank amid worries that higher energy prices could sap global economic growth and on renewed concerns about China’s economic slowdown.

China is the world’s largest consumer of both iron ore and copper, two raw materials necessary for construction and manufacturing. Investors have been increasingly concerned that Beijing’s tight credit policies will trigger a so-called “hard landing” where business activity stalls.

“That’s not good for copper consumption either,” said Sterling Smith, an analyst with Country Hedging. “We’re probably overpriced compared to where demand should be and at this point I wouldn’t be surprised if we came back to the $3.40 level.

However, some market watchers said the sharp decline in copper prices was overdone, as the easing demand for iron ore was an expected side effect of China’s tightening measures.

“These statements should be seen in the context of the lower growth target set by the Chinese government, and in our view should not come as any great surprise to the market,” said analysts at Commerzbank. “

 

Recent data from Ernst & Young suggests that economic growth in China is indeed slowing. They add that “Industrial value-added output was up by 11.4% year on year in real terms in January-February – its slowest rate of growth in two years.”

Underscoring the increasingly weak situation in China is the YoY growth of only 7.6% of electrical generation in the first two months of 2012.

Marketresearch.com points out “as the downtrend in GDP growth intensifies in 2012, we expect that the growth rate of power consumption wills low from an estimated 11.1% in 2011 to 7.6% (below the 8.5% to 10.5% rate indicated by the Chinese authorities).”

Ernst & young also points out that two important sectors, cement production and car retailing have both performed poorly in recent months along with rising inventories of copper.

Copper up in thin volume; slow China demand weighs

“NEW YORK/LONDON (Reuters) – Copper edged up on Wednesday [2012-04-10], recovering a fraction of the prior day’s steep 2-percent drop, as evidence of slowing Chinese demand for commodities underscored recent market concerns and kept most industrial metal prices in a holding pattern.

Another day of lighter-than-usual trading volume reflected the copper market’s indecision about just how deep a slowdown China’s economy will face and to what extent demand for industrial metals will be impacted.

Copper demand from China, which accounts for about 40 percent of global consumption, has been slow to pick up after the Lunar New Year, raising worries that prices could retreat sharply. Imports of refined copper into China had soared to a record of 406,937 tonnes in December from a year earlier, but the rate of inflows have slowed since then.”

 

The bottom line is that there will be some excellent opportunities regarding copper in the future, but not today.

To contact me with suggestions or deserved praise:

[email protected]

Written by Gary

Previous Post

Update: The Case Against Investing in the Dow Industrials (For Now)

Next Post

April 2012 Beige Book: Economy Expanded at a Modest to Moderate Pace

Related Posts

Zero-Day Spells Doom For Bitcoin ATMs
Economics

Zero-Day Spells Doom For Bitcoin ATMs

by John Wanguba
March 26, 2023
Exiled Chinese Billionaire Guo Wengui Arrested By US Authorities Linked With $1B Fraud Scheme Allegations
Econ Intersect News

Exiled Chinese Billionaire Guo Wengui Arrested By US Authorities Linked With $1B Fraud Scheme Allegations

by John Wanguba
March 26, 2023
Shibarium To Use 70% Of Each Base Transaction Fee To Burn Shiba Inu
Economics

Shibarium To Use 70% Of Each Base Transaction Fee To Burn Shiba Inu

by John Wanguba
March 25, 2023
Is Cardano A Good Investment In 2023?
Econ Intersect News

Is Cardano A Good Investment In 2023?

by John Wanguba
March 25, 2023
Canada's Banking Regulator Reiterates Creditor Hierarchy After Credit Suisse Deal Riled Bondholders
Business

Canada’s Banking Regulator Reiterates Creditor Hierarchy After Credit Suisse Deal Riled Bondholders

by John Wanguba
March 25, 2023
Next Post

April 2012 Beige Book: Economy Expanded at a Modest to Moderate Pace

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin adoption Bitcoin market Bitcoin mining blockchain BTC business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe FTX inflation investment market analysis Metaverse mining NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Zero-Day Spells Doom For Bitcoin ATMs
  • Exiled Chinese Billionaire Guo Wengui Arrested By US Authorities Linked With $1B Fraud Scheme Allegations
  • Shibarium To Use 70% Of Each Base Transaction Fee To Burn Shiba Inu

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish