Save
Print
Copper futures rebounded from a 15-week low Tuesday as some investors saw bargain prices, while others hoped to see a dovish tilt in the Federal Open Market Committee's meeting minutes, which are due out Wednesday.
The most actively traded contract, for December delivery, was recently up 1.95 cents, or 0.6%, at $3.1690 a pound on the Comex division of the New York Mercantile Exchange.
Copper prices skidded to their lowest settlement since the end of July on Monday, as investors shed the metal amid worries that economic reform in China would lead to lower demand for the industrial metal.
China accounts for about 40% of global copper consumption, and the unveiling of its economic blueprint last week has sparked fears that reduced government support of industrial enterprises would have a lasting impact on the copper market.
"They're trying to move to a service economy, away from manufacturing, and you don't use the same raw materials in the service industry as you do in manufacturing," said Ira Epstein, director of the Ira Epstein division at the Linn Group.
Copper is widely used in electronics, automotive production, construction and general manufacturing.
Still, Mr. Epstein said that while China has outlined its plans, implementing them will take time. "It's not an overnight event," he said.
Some investors returned to the market Tuesday, taking the opportunity to repurchase copper at lower prices.
Copper traders are also training their sights on the release of the Federal Open Market Committee's meeting minutes, due Wednesday afternoon. The Fed's accommodative monetary policies have helped spur U.S. economic growth and bolstered copper demand from the world's second-largest user of the metal after China.
"If the Fed starts trimming bond purchases, there's a fear it could slow down economic conditions and that would send copper prices lower," said Bill Baruch, senior market strategist with iiTrader.
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!
- [Editor:editor]
Daily News
Research
Magazine
Company Database
Customized Database
Conferences
Advertisement
Trade
Tell Us What You Think