There Goes Copper...

BI ^ | 7-23-2015 | Akin Oyedele

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Akin Oyedele

July 23, 2015

Copper is at a six-year low.

On Thursday, copper fell nearly 2% to as low as $2.385 a pound, the weakest level since 2009.

This is part of a big sell off in commodities. Iron-ore prices have plunged, crude oil is trading below $50 per barrel, and gold is far from recovering after Sunday's flash crash and this week's continued weakness.

Each market has its own set of factors motivating traders to sell. However, concern about China's slowing economy is something that is working its way across a few markets.

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[Red Badger]

Scrap metals have been down for a while now...................

[onyx]

Why?

[Harmless Teddy Bear]

If it keeps falling maybe I can get that copper roof I have always wanted.

[headstamp 2]

Too late. PEX is steamrolling the water line market.

[lormand]

Sell off = Buying opportunity

[blam]

Posted a couple days ago:

New Highs For The Baltic Dry Index

Forget Recession: According To Caterpillar There Is A Full-Blown Global Depression

[thackney]

The outlook for copper is greatly focused on China.

[Fido969]

"You got nothin' on me, copper!"

[JimSEA]

There are several copper projects waiting regulatory approval which has been years in arrears, at the behest of the enviros. Other startups are waiting on better prices. At $3.50 a number are ready to start production.

[GOPJ]

And it is not just in China as many would like to scapegoat: in June, in addition to a -19% drop in Asia Pacific (following a 30% Y/Y plunge a year ago, which in turn followed a 21% drop in 2013), US retail sales posted their first Y/Y decline since February, dropping by 5%.

But the real depression is in Latin America, where CAT retail sales plummeted by a whopping 50%: the most in reported history, and follow an 18% drop from a year earlier.

One more reason to close the borders...

[onyx]

OKay, thank you so much!

[onyx]

Thank you.

[Erik Latranyi]

Activity in North & South America are way down recently. We have fallen off the cliff, but do not realize it.

[JPG]

[InterceptPoint]

Too bad candy is not a commodity. It does nothing but go straight up. We could all be rich.

[G Larry]

Darn!

Waited too long to sell my penny collection....

[Raymann]

So why ain’t my ammo prices dropping dagnabbit!

[Cold Heat]

Why?

Pretty simple..It's the usual reason where supply far exceeds demand.

In spite of all the rosy economic statements coming from the Obama regime as well as the Chinese, (two largest users of copper) the reality shows up in the prices of commodities and copper is a commodity.