Copper began to fall on 14 January, when it became known about the first victim of coronavirus – by that time, China was identified 41 cases of the disease. Since then, it fell 11.7%, to 5 562 dollars per ton on Friday, January 31. The last time the metal was worth so cheap in may 2017
Experts attribute this decline to market risk, which caused a coronavirus. Copper reacts to the mood of the markets stronger than other metals, since traditionally serves as an indicator of economic activity: as soon as market expectations deteriorate – it is cheaper.
For the first nine months of last year the world produced 18 million tons of copper, consumption amounted to 18.2 million tons.
Reduction in prices takes place in other industrial metals. So Nickel fell on Friday to 12 $ 670 per ton (-8,7%), and aluminium – up to 1 725 dollars per tonne (forecast to be minus 4.6% since the beginning of the epidemic).
From the coronavirus can suffer not only the market of non-ferrous metals and steel. China is the world's largest producer and consumer of steel and metals. If scheduled before February 10 stopping vehicle production lines and the reduction in construction activity will continue, the demand for steel will fall around the world. On the background of excess capacity, this will cause a drop in prices and profitability of the producers.
