Benchmark
If You're Feeling Bullish on China, Consult Dr. Copper
Traders predict the benchmark metal will hit new lows this year as slowing demand fuels a global glut
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If this week’s better data from China convinced you that things in the world’s second-biggest economy aren’t that bad after all, check with Dr. Copper.
The metal, known to some as the commodity with an economics degree, plummeted to a six-year low of $5,240 a metric ton last week on the back of the rout in Chinese stocks. While the government was able to stop the bleeding in equity markets and copper has recouped some of its losses, people who trade the metal predict weaker demand growth from China will help drag down prices.