Following the negative trends of nickel and other industrial metals, copper prices fell to the lowest level in last six years. The weakening of the Chinese economy has a negative impact on prices of metal and weak demand causes stockpiling.
According to information released by the Herald Sun, the value of the three-month contract for delivery of copper fell by 1.5% in September on the New York Mercantile Exchange, to the 2,287 US dollars per pound. This is the lowest value of the contract since July 2009.
Movements in the price of copper aren't any better on the London Metal Exchange. After a moment when the value of copper in daily trading fell below the psychologically important $ 5,000 per ton and stopped at only $ 4,983 / t, the value of the three-month contract for copper fell to the current 5,005 US dollars per ton.
In February 2011, copper broke the magic barrier of $ 10,100 per ton several times. Then downward trend began and its continued until today.
The movement of copper prices from February 2011 to August 2015.
Current low price of copper can be considered as a result of last week's devaluation of the Chinese yuan against the US dollar, and a decline of 6.7% on the Chinese stock market.
Many analysts believe that this is not the bottom, and that copper will fall at least 10% in the coming months. There is another stream which claims that the value of copper will increase in the last quarter of the year. This can be starting point for various speculation, and what will really happen is primarily in the hands of the Chinese economy.