Copper is Headed for its Worst Week in the last Year
Other precious metals witness losses in value...
As commodities have stayed strong through the world’s economic downturn, Copper is one of the rarities that as of yesterday is set for its biggest weekly fall in a year. Currently, investors are panicking with prices dwindling by 6.5%. Nickel also experienced its own slump losing nearly 13% this week and tin also lost 22%.
"There is a risk of further losses. A sharp economic slowdown or recession seems to be on the cards."
Robin Bhar, an independent analyst, said.
Copper on the London Metal Exchange was a half percent lower at $8,367 a ton after touching a low of $8,122.50. After witnessing peaks in March, the metal recorded a downturn of 25%. Copper is predicted to possibly fall towards its cost of production which is around $7,000. However, tight supply and rising demand for the use of copper will lift prices… Eventually.
Tin was another metal facing some blows as it too was down nearly 10% yesterday at $24,260 a ton which is down 50% from highs in March. Nickel was also down 6.9% at $22,375 a ton and trading at the lowest figures seen in five months.
Another metal, Aluminum, fell a little less than a full percentage to $2,457 and recorded a loss of 2% this week. Zinc lost 4% to $3,354.50 and lead lost 1.2% to $1,925.