NEW YORK Copper
prices hit a 1.5-month low June 18, but sources expect that to
turn around later in the week when buyers start looking to
purchase low-cost copper.
The July Comex
contract, the most actively traded, has been dropping steadily
since May to settle at $3.155 per pound June 18. Thats
the lowest settlement since May 2 when the contract finished at
$3.102 per pound.
One reason for the
decline is the strength of the U.S. dollar against the euro,
which puts downward pressure on commodities in general, one
metals broker said. Chinas economy is also slower than
some would have liked, causing some uncertainty in the market,
However, it appears as
though copper prices have hit bottom, which could cause
"bargain shoppers" to buy up the discounted copper, he
But for now, business
is very slow for traders.
"The market dipping
like this reflects that business just isnt very good," a
copper trader said.
According to the
metals broker, London Metal Exchange stockpiles have seen heavy
increases, indicating that demand is very weak.
warehouses held 632,150 tonnes of copper globally as of June
17, up from 609,200 tonnes June 10, according to LME data. U.S.
stocks, however, have been slowly decreasing for weeks. Copper
stocks in U.S. warehouses dropped to 197,925 tonnes June 14
from 203,200 tonnes in May.