With another sharp selloff in July copper overnight, the market has fallen to the lowest price levels since April 24th. Overall macro economic views may be reflecting a potential return to recession, due to the latest Euro zone developments and from recent evidence of slowing US economic momentum.
Copper may find some additional pressure from news of a minor increase in March copper production from Peru, but that negative supply side factor may be offset by yet another large decline in daily LME copper stocks of 7,525 tons, especially since that puts copper stocks down at only 220,925 tons. With fear of a Euro zone debt debacle holding the market's attention and the US Fed appearing to be content with waiting to see what happens with US growth, Asian copper prices were softer overnight and found additional pressure from reports of a possible delay in a Chinese government five year planning meeting.