The majority of base metals’ prices plummeted in the global markets on the first day of the week, mainly due to low demand in Europe and the growth of dollar against major currencies, Eghtesadnews reported on Tuesday.
Based on the report, the copper stood at $6100 per metric ton, registering a 1.8% decline compared with the previous week. The euro, reaching its lowest value against the dollar in the past 6 months, has had a dramatic effect on the prices for the red metal.
Moreover, the global markets have been witnessing declining demand for copper. The copper warehouses which are supervised by London Stock Exchange (LSE) as well as China’s copper reserves are currently at their highest levels since the beginning of the year, hitting 178,425 and 111,915 metric tons respectively.
The dollar’s rise to its highest level in more than 10 years, together with China’s less-than-expected economic growth and further decline in oil prices are also blamed for the declining prices for other base metals. China is the largest consumer of copper in the world. Analysts anticipate spot prices for copper to stay relatively flat in the next few months.
