March copper has already posted a fresh new low for the move overnight, which many traders feel may be the result of deteriorating macro economic sentiment. Residual Euro zone fears are widely seen as a major component of the pressure this week on physical commodity prices, but some traders feel that it is also possible that the lack of fresh easing action from the Chinese central bank has allowed the Asian copper demand outlook to remain very soft. In fact, an extended slide in Shanghai copper prices recently may be a sign of the lack of optimism toward copper in Asia. News that a major strike threat at an Indonesian mine has been reduced was thought to have added to the pressure on copper prices this morning. On the other hand, there appears to be plenty of wrangling between pro mine and anti mine camps in Zambia, so some in the market feel that copper may not be completely devoid of supply side threats.
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