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Copper at New 14-Month Low in Commodities Downfall

September 30, 2011 at 15:45 by Andriy Moraru

The overall bearish market in the commodities and expectations of a lower demand for copper due to the global industry contraction led copper to a new minimum level in last 14 months. The metal is currently showing its worst monthly decline since October 2008.

Market participants see little point in betting on copper in the face of the expected recession wave that will probably hit both developed and emerging economies. China, the biggest consumer of copper, will likely have to reduce its imports if GDP growth falls short of the government forecast next year.

Copper is currently leading, along with nickel and cotton, the list of the most bearish commodities this year. It was expected before that the lower production numbers will stimulate the price growth for this metal. Now the analysts cut their price forecasts before the London Metal Exchange Week that will be held next Monday and will shed more light on the state of the industry.

Copper COMEX continuous price fell from $323.55 to $315.00 per 100 pounds as of 15:40 GMT today. It reached its daily low at $311.45 — the lowest level since July 2010. This month copper is showing 24.6 percent drop.

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