Copper prices will fall amid a slowdown in the global economy, according to traders. Lately the number of their short positions has increased and long ones decreased, according to the data of London Metal Exchange and Comex. According to analyst of Saxo Bank Ole Hansen, it occurs because of risk of approach of the world recession. This metal is traditionally regarded as an indicator of the global economy.
At the end of yesterday's trading session on the London Metal Exchange copper quotations rose for the seventh session in a row - they rose by 0.19%, reaching $8182.00 per ton. In March, the prices set a record at $10,845 per ton, which was due to slowdown in GDP growth of the largest importer - China. After that, copper lost a quarter of its value. On July 15, the prices reached their lowest value for 1 year and 8 months.
Too low prices could lead to the closure of a number of copper mining and production companies - this will happen if they fall below marginal costs, equal to about $6000 - $6400 per ton, said Morgan Stanley.