Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Copper struggles near 6-year low after China metal imports decline

CommoditiesJul 13, 2015 03:18AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Copper under pressure after China metal imports decline

Investing.com - Copper prices struggled near the lowest level in six years on Monday, after data showed that China's imports of the red metal slowed to a four-month low in May.

Copper for September delivery on the Comex division of the New York Mercantile Exchange shed 2.1 cents, or 0.81%, to trade at $2.517 a pound during European morning hours.

On Friday, copper lost 1.4 cents, or 0.55%, to end at $2.537. Prices of the red metal slumped to a six-year low of $2.381 on July 8.

Official trade data released Monday showed that China’s copper arrivals in June fell 2.8% from a month earlier to 350,000 metric tons, the lowest level in four months.

The country’s trade surplus narrowed to $46.5 billion last month from $59.5 billion in May, compared to estimates for a surplus of $55.7 billion.

Chinese exports rose 2.8% from a year earlier, beating forecasts for a decline of 0.2%, while imports fell 6.1%, better than expectations for a drop of 15.0%.

A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.

China is scheduled to release data on second-quarter gross domestic product on Wednesday. The report is expected to show the world's second largest economy grew 6.9%, slowing from 7.0% in the preceding quarter.

Beijing has set a growth target of "around 7.0%" in 2015 after the economy grew 7.4% in 2014, the slowest pace in 24 years.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere, gold futures for August delivery tacked on $2.60, or 0.22%, to trade at $1,160.50 a troy ounce, while silver futures for September delivery dipped 1.8 cents, or 0.12% to trade at $15.46 an ounce.

Market sentiment recovered as marathon overnight negotiations on a bailout deal for Greece hammered out an agreement to prevent a financial collapse and an exit from the euro area. The details of the agreement were to be announced a press conference later in the day.

Greece accepted a series of draconian measures demanded by its creditors in exchange for a third bailout deal.

The Greek parliament must approve a package of reforms on Monday and then pass several pieces of legislation by Wednesday, including on pensions reform and a new sales tax regime, before the euro zone will agree to negotiate a new three-year rescue package.

The euro jumped on the news, hitting highs of 1.1197, before turning modestly lower, while the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 96.00, little changed for the day.

The greenback remained supported after Federal Reserve Chair Janet Yellen said in a speech Friday that the central bank is on track to raise interest rates at some point this year. The comments from Yellen are her most definitive to date on the timing of a 2015 rate hike.

Copper struggles near 6-year low after China metal imports decline
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email