copper chart update
The copper chart below looks terrible.
METALS-Copper spirals down for 4th day because of China fears.
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| copper chart update |
Copper spiralled lower for a fourth straight session on Wednesday, sinking to fresh 44-month lows on persistent worries about the potential for credit problems in China to unleash metal from inventories.
The metal is often referred to as "Dr. Copper" for its reputed ability to reflect the world's economic health, since it has broad industrial uses ranging from construction to electricity supply to automobiles.
European industrial consumers have been bargain hunting but analysts say prices may slide further before heavy buying kicks in from consumers in China, which accounts for 40 percent of global demand.
Copper on the London Metal Exchange, the most widely followed metal among investors, slid to a session low of $6,376.25 a tonne, its weakest since July 2010, before recovering to $6,428 by 1120 GMT, down 0.7 percent.
Most other base metals were caught in the downdraft, but nickel bucked the weaker trend and added 0.5 percent to $15,628 a tonne, extending its recent rally fuelled by concern about an Indonesian ban on unprocessed ore.
Three-month LME copper has shed nearly 9 percent since Thursday, including 2.6 percent on Tuesday, and the free-fall was having knock-on effects on other markets.
Stocks across Asia fell while the Australian dollar, Chilean peso and South Africa's rand, currencies highly sensitive to commodities, all buckled.
Fears continued to percolate among investors that moves by China to deregulate its economy would mean a halt to a thriving trade of importing copper to lock in financing for other sectors such as real estate.
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