Mixed Results for Copper as Chinese Manufacturing Slows
Copper prices rose to a one-week high today as we saw a bit of inflation out of China – the largest manufacturer in the world and massive consumer of raw materials including gold, silver, and copper. However manufacturing levels are not as high as expected, and consequently demand for copper is down.
Slower demand is also due to global fears of economic troubles as Europe is in the midst of a debt crisis.
China’s July manufacturing growth is at its weakest level in 3 years, with inflation standing at 1.8% – a 1.5 year low.
As bad as Chinese economic data is, traders were optimistic that this might cause the Chinese government to take active measures to stimulate the economy.
Copper November futures in Shanghai rose 0.8% to around $8,700 per tonne – the highest level in all month.
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