Copper defies forecast for a better economy

Author: Paul Ploumis13 Jan 2015 Last updated at 04:42:01 GMT

LONDON (Scrap Monster): The metal price traded near to the lowest point since the month of October in the year 2009, after declining to about 1.2 percent yesterday, out of the concern that, the output of the commodity is outpacing the demand for the metal. The copper consumption of the country will hike at the slowest mode since the year 2010, forecasted the Deutsche Bank AG. Meanwhile, the global economic growth will hike to a better point than in the last four years, estimated the economists.

The decline in copper reflects the loss which is to come forth on the commodities, in which a decade long bull market compelled the companies to increase their production, and the Federal Reserve is debating on when to increase the interest rates. Last week, the investors became almost sure on the matter that copper is the worst performing metal in the market of the previous year after the metal has declined to about 18 percent.

The head of commodity strategy at TD Securities, Bart Melek, stated that, Copper played a decent role in the history to forecast the performance of the market and the economy. At present the forecast is not so pleasurable.