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Copper Falls on Bad US Durable Goods Orders Report

July 27, 2011 at 19:10 by Andriy Moraru

Copper corrected after yesterday’s growth today, as the report on June durable goods orders in the United States disappointed investors, signaling a decreasing demand.

Durable goods orders, which considerably increase the consumption of copper, fell by 2.1 percent in June, while a slight growth (0.3 percent) was expected by the markets. The report was a big disappointment for the copper bull traders, reducing the buying sentiment in the market.

Even the continuing strike at the world’s biggest copper mine Escondida (located in Chile and owned by BHP Billiton Ltd.) couldn’t prevent the industrial metal from dropping; though it probably reduced the extent of a decline. The situation with the mine is facing a dead-end, as the company’s officials are refusing to discuss with the workers.

Copper 3-month delivery futures contract fell from $447.20 to $444.05 per 100 lbs on COMEX as of 16:00 GMT today.

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