On Tuesday, copper fell for the first time in four sessions as the US dollar gained strength, and concerns resurrected over the economic recovery and stability in the euro-zone.
Canada is the third largest copper producer in the world, after Chile and the USA. In Canada, copper is always produced in conjunction with another metal, most often as a co-product with nickel, zinc, lead, gold and molybdenum.
Fears that the economic recovery is about to stall caused bell weather copper to fall its most in five weeks.
Copper climbed to a one-week high as a declining greenback spurred international demand for the metal.
Copper plunged to a near two-week low Tuesday, as investors worried that the recent rally has been overdone. Benchmark copper for three-month delivery on the London Metal Exchange traded at $7,250 a tonne from $7,425 at the close on Monday.
Copper dropped on Tuesday, marking the first time in five days that the metal treaded into negative territory. Copper for delivery in three months fell $91, or 1.2 percent, to $7,419 a metric tonne at 10:07 a.m. on the LME.
Copper enjoyed a welcome relief rally last week; but on Tuesday, the recovery was snapped as negative consumer sentiment sent equities across the US and Europe downward.
Copper commenced Tuesday in positive territory, extending Monday’s winning streak on the back of the longest run of inventory declines in over a year. Copper is ignoring overall market sentiment as lower than anticipated earnings reports from both Goldman Sachs and IBM wreaked havoc on the American and European stock markets.
Copper surprised analysts Tuesday, recovering from Monday’s losses. Copper prices dropped on Monday, over concerns regarding China’s demand for the base metal.
Copper advanced for the third straight day, as stockpiles plummeted to a seven-month low. Stockpiles have descended for the thirteenth straight day, a sign of tightening market fundamentals. Adding extra impetus to copper’s ascent was a declining greenback.
Tuesday, September 7, 2010