Copper's collapse tops $1 000 as Trump picks a fight with China
SHANGHAI – Copper’s flashing a powerful warning about expectations for economic growth after US President Donald Trump chose to embark on a major escalation of his administration’s global trade war, imposing tariffs on $34-billion of imports from China, which vowed to respond in kind.
The metal has lost more than $1 000 since closing at a four-year high of $7 332 a metric ton on June 7. The slump deepened on Friday, with prices down 0.8% to $6 297.50 on the London Metal Exchange by 6:45 a.m. in London, set for the biggest weekly loss since 2015.
“Copper has become the lightning rod for concerns about economic growth amid the rising trade dispute,” Australia & New Zealand Banking Group said in a report, while suggesting that even though there were signs of slowing expansion, the metal’s recent steep decline was overdone.
Metals including copper and zinc have weakened in recent weeks on concern that the litany of trade disputes initiated by Trump – which also cover wrangles with the European Union, Canada and Mexico – will escalate and harm the global economy. On Thursday, the LMEX Metals Index hit the lowest since August 2017, and most base metals lost ground on Friday.
“We feel the market is oversold,” ANZ said, referring to copper. “Supply disruptions remain a threat, and shifts in China’s consumption patterns will see demand for refined copper remain strong. If trade tension subsides, we would expect copper prices to recovery strongly in the second half of 2018.”
Copper is a building block of the global economy. In the run-up to the tariffs deadline that passed on Friday, Bank of England Governor Mark Carney said the rise of protectionism will affect trade flows, push up import costs, and have an impact on confidence, investment and demand.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
