Author: Paul Ploumis09 Jan 2015 Last updated at 05:05:29 GMT
WASHINGTON (Scrap Monster): The reduction in the supply of copper from the mines is keeping the market in balance, which means that any increase in the demand for the commodity or, decline in the supply of copper, would move the price of the metal into a positive territory.
In the London Metal Exchange, the largest metal TRADING MARKET in the world, 16 percent of the contracts are stating that the value of copper will fall, and they are at the highest level since the exchange started publishing data in the month of July. At the same time, in Shanghai Futures Exchange, the number of similar contracts has hiked 180 percent, since the beginning of the month December.
When the value of Brent oil fell by more than 50 percent in the previous year, the 14 percent of copper’s decline had left the watchers expecting that, the metal is yet to receive the whole negative impact of the energy sector.
One of the metal trade stated that, when we have a look into the energy complex, the base metals have fought well. If someone wants to invest in a commodity, then he should not be looking onto oils which are at multi years low now, but the focus should be shifted to a commodity which is not much affected by the strengthening dollar.