Copper Futures Extend Losses on Chinese Real-Estate & Yuan

Copper futures are seeing a second day lower on the outlook of the weakness of both China’s real-estate market and their currency – the yuan.  Expert opinions claim delays in loans for real-estate transactions will slow demand for the industrial metal in the country that is the world’s biggest consumer of copper.

The delay in loans in China are expected to last until the end of March.  The Copper Development Association claims construction generates nearly 40% demand for copper world-wide.  Copper futures are down 4.1% year to date.

Kevin Riordan, director of research at Capital Trading Group in Chicago, had this to say regarding the current copper futures situation,Adding to slowing copper demand in China is the falling Yuan coupled with China’s weak real estate market.”

Copper futures trend is technically down, and we are short this market, but in the overall bigger view it has been trading sideways since last summer.  I’ll stick with the technical trend for copper futures until another picture unfolds.

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