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Copper Matched 19-Month Low

October 2, 2008 @ 6:41 am In Copper Market News

Wednesday saw copper at a 19-month low of $6,120 per tonne and later rose with expectations of a bailout plan being approved by Friday.

Copper MCU3 traded at $6,200 from $6,160, boosted by the U.S. Senate's approval of the bailout plan. But it is about 30 percent away from a record high of $8,940 seen on July 2.

Find the complete article here [1].

An expected lower demand from the world's largest consumer of copper, China, as well as concern about construction and power industry demand is a worry.  It is questionable as to how demand from other countries might offset the reduced US usage and current slowing demand in the European Union.  Strengthening US dollar is playing a role in bursting the commodity bubble.

Many believe the U.S. currency's fall against the euro since 2002 has been a major reason behind the surge in commodities, priced in dollars.

Find the article here [1].


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[1] here: http://www.reuters.com/article/etfNews/idUSL247751720081002

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