Copper Prices Dive More Than 12%

Prices of copper, a barometer for the health of the global economy, have dived more than 12% since mid-January, as the coronavirus outbreak pushed China to extend a shutdown in its manufacturing regions.
Copper prices fell for the 13th straight day on Monday to a low not seen since September last year, as the outbreak grew more widespread, CNBC reported.
From electronics to construction of homes, copper is used extensively in manufacturing and demand for the metal—dubbed Dr. Copper—is an indicator of the economy’s health. China is the world’s largest metals consumer.
“Copper’s ... really tied to the manufacturing sector. Manufacturing’s been the weakest front in the global economy,” Jeffrey Kleintop, chief global investment strategist at Charles Schwab said. “The concern is, this is another shock to the global economy, and manufacturing after the trade shocks of last year. And it’s enough to keep copper and other base metals used in the manufacturing process in ... a period of weakness.”
Prices of copper traded in Shanghai also fell to a three-year low on Monday as Chinese markets reopened after an extended Lunar New Year break. The most traded copper contract on the Shanghai Futures Exchange fell by its daily limit of 7%.
The Shanghai Futures Exchange has suspended night trading till further notice.
The shutdown in China’s key manufacturing regions will hit copper prices further, ANZ Research pointed out in a report last week. Many Chinese cities have also imposed strict travel restrictions.