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Thursday, June 13, 2019

Copper price is being held hostage by macro jitters

By: Neil Hume
The Financial Times

Since US President Donald Trump’s May 6 tweet threatening higher tariffs on hundreds of billions of Chinese goods, major raw materials have been in the doldrums with only gold, iron ore and a few weather-hit crops managing to buck the trend. Everything else has been under pressure.

Take copper, which is often viewed as a bellwether for the global economy because of its wide range of uses in construction and industry. It has dropped 9 per cent since the start of May and is sitting at $5,855 a tonne.

It has been weighed down by the US-China trade uncertainties and concern about slowing global growth. There has also been a big increase in bets against copper in the futures market.

Read more at The Financial Times.