Altan San Securities - Mongolia Investment - Copper prices fall, ending rally

Copper prices fall, ending rally

Copper prices slid last week, retreating from the previous week's rally, after weak US Manufacturing data strengthened the dollar and signaled to traders that demand remains weak. Copper for three-month delivery on the London Metal Exchange closed at USD5,006 a ton, down from USD5,230 on June 12. "Prices were looking over-extended and we were looking for a pullback over the summer," said an analyst at Barclays Capital. "Probably what we are seeing today is a bit of a correction from those extremely big gains, sparked by the data." A stronger dollar makes metals priced in the US currency more expensive for holders of other currencies.

Copper, used in power and construction, hit an eight-month high of USD5,388 a ton the previous week’s Thursday on a slew of improved economic data, but analysts say fundamentals remain weak. It has risen more than 60 percent this year in a rally sparked by increased demand from China. But this demand, which appears to have been based largely on stockpiling by the world's top copper consumer, seems to be tailing off.

Source: www.news.mn

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