August 16 COMEX Copper Review

NEW YORK, August 16 news, COMEX copper rebounded higher on Thursday, due to signs that trade tensions have eased, copper prices fell into a bear market earlier, the first time since November 2016.

The most active September copper contract on COMEX rose 5.65 cents, or 2.2%, and settled at $2.6165 a pound.

In August, the copper contract also closed up 5.65 cents or 2.2%, and the settlement price was reported at 2.6135 US dollars per pound, which reversed the trend of four consecutive days of decline. Copper prices have fallen 21% from their four-year highs in June, fearing that trade protection mechanisms will slow global economic growth and hit demand for raw materials for the construction and manufacturing industries.

However, the Sino-US trade impasse seems to have made some breakthroughs on Thursday, and the two sides will hold lower-level consultations on trade issues later this month.

Copper and other base metals are very sensitive to China’s weak economic signals, and China’s demand for copper accounts for about half of global copper demand.

Analysts said that after the price of copper fell below the key technical level, selling accelerated, and some people expect that the latest trade news will make the copper market continue to fluctuate significantly.

Xiao Fu, head of commodities research at BOCI Global Commodities, said: “Some people think that selling is not yet mature, but whether the copper is oversold, these factors may continue to sell for a few days or weeks.”

The dollar weakened on Thursday and supported the copper price. Copper is denominated in US dollars. When the US dollar weakens, copper prices become relatively more affordable than investors holding non-US dollar currencies, attracting such investors to buy.

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