You will note that in Tuesday’s pricing update I said “Dare I say that markets have been relatively steady in the past week.” As it turns out, I shouldn’t have dared!
On Tuesday the Australian Copper Scrap Base price was at AUD7388, however after a series of falls in USD terms and a relatively steady exchange rate during the week, the copper price has fallen AUD819, currently trading around AUD6568/t. A drop of over 11% in less than 5 days!
Please find the following article for your perusal;
NEW YORK/LONDON, Oct 20 (Reuters) -
Copper prices tumbled nearly 7 percent on Thursday, the biggest one-day collapse in four weeks, on fears of a double-dip recession and growing doubts that Europe will get a handle on its debt crisis. Metals, often seen as a proxy for underlying economic conditions due to their wide use in industry, were hit hard by the specter of a global slowdown with lead, zinc and aluminum all hitting their lowest level in more than a year.