It has been a difficult week in the metal markets.
As we head towards the end of the year, Copper markets have taken a tumble with the official copper price last night at its lowest since 1st July 2010. Although the Australian dollar is also on the decline (which is taking some of the sting out of the price falls).
**** DJ Copper May Follow Iron Ore and Oil, Says Goldman — Market Talk ****
By Josie Cox @ wsj.com
0947 GMT [Dow Jones]–After iron ore and oil, copper might be next to hit a very slippery downwards slope, says Goldman Sachs. “Since June the oil price (Brent) has fallen by c.40% to $70/bbl, with the declines reportedly exacerbated by producer hedging once prices moved below long-term cost support of c.$90/bbl,” the bank writes in a note. “Copper significantly breached its perceived long-term cost support of $3/lb ($6,600/t) last Friday, opening up the possibility of a similar dynamic of increased producer hedging and a sharper than consensus price move lower over the coming year,” it adds.