Posted on 07/23/2015 10:02:41 AM PDT by blam
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.
(snip)
(Excerpt) Read more at businessinsider.com ...
Yes, the act of falling is painless.....
Good point. Do you happen to know what % of copper production goes to piping?
Didn’t commodities plunge just before the last major recession in 2008?
Would think that significant decline in demand may indicate true state of economy declining consumer confidence and per capita higher debt, lower earnings.
Also recall cardboard box order demand is an indicator of the economy six months out.
Francisco?
You have a zinc collection, not much copper.
97.5 percent zinc and 2.5 percent copper
http://www.usmint.gov/about_the_mint/fun_facts/?action=fun_facts2
I always time these things poorly. I have about 800 lbs of copper in the garage that I need to get rid of.
Yes they did plunge, but they did not lead the pullback, they were more of a symptom of the banking/housing bubble break.
But if I recall my history correctly, commodities did lead the 1929 depression.
Growth slowing
Recession ahead
Thank you.
Recession ahead.
I think so, too.
Since we are on the topic, it is important to make the observation that precious metals are in decline as well, gold, silver etc.
In my view, I cannot say anything definitive about this as the market prices on both sides of the pond are totally artificial, being manipulated by reserve banks.
Because of this, it is possible that reserve banks have completely shot their wads and if the market believes this to be true, then there is bad weather coming.
If the market blows it off as “new normal BS” then it’s just a correction.
Yeah, I recall the issue then was largely blamed on the strong dollar in relationship to other currencies. This occurred just before the housing bubble popped but was not believe to be related to economic slowdown issues.
I do not believe that we are in a commodity bubble. Gold has been declining for many months now, however the same sort of situation with the stronger dollar appears to be playing out.
What is so different this time is that China, the major user of commodities, is in a economic decline.
So in my view, this is different, and perhaps more akin to the “29’ recession/depression after a bull market.
This time however the bull market is artificial, and things that are faked, seem to die much more violently.
Oh, that’s right and the month of October looms!
Yeh low demand due to nothing being produced. Oh wait the economy is rebounding. :-)
Yup. Demand (mostly) from China.
http://www.copper.org/resources/market_data/images/b10func.jpg
http://www.copper.org/resources/market_data/spring_2002_meeting_paper.html
Best I can do. Great website.
“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.”
Things get tough when you go communist.
You have about 1300-1400 dollars or so there depending on your area.
What’s your best guess - depression or inflation?
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