The price of copper has plummeted
Copper is falling rapidly. Investors focused on rising stocks and declining interest from Chinese buyers.
Bloomberg writes that the price decline came after a 3.2% drop during the previous session, when new signs of weakening demand appeared on the Chinese spot market, while stocks at the London Metal Exchange warehouses in Asia rose sharply.
The increase in inventories indicates that traders have redirected supplies destined for the United States to London Stock Exchange warehouses in other countries after falling premiums in the United States, said Fan Rui, an analyst at Beijing-based Guoyuan Futures Co.
Nevertheless, there are signs of sustained demand from Chinese power grids. The state-owned Electric Grid Corporation of China, the country's largest copper buyer, announced a 35% increase in fixed asset investments to $4.4 billion in January in ultra-high-voltage networks and pumped storage power plants.
This corresponds to a 40% increase in the spending budget for the next five years, which could boost demand for copper.
As of 5:18 a.m. Kyiv time, the price of copper dropped to $12,953.50 per ton. Thus, 1 kilogram of metal cost $ 12.95.
At the same time, Reuters writes that commodity prices – from silver and gold to oil and copper – have fallen sharply as global tensions eased following a telephone conversation between the leaders of China and the United States, who are also due to hold talks with Iran this week.
Thus, spot gold retreated from an almost weekly high at the beginning of the session, falling by 2%, and spot silver plummeted immediately by 15%.
In addition, iron ore prices also fell by 2%, driven by high reserves.