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Copper Falls to 2009 Lows on Poor Caixin Manufacturing PMI

August 3, 2015 at 8:46 by Andriy Moraru

Copper, along with other commodities, began the week with a slump. The metal, which is strongly associated with global manufacturing growth, declined to the levels not seen since 2009 as the China’s purchasing managers’ index continued to fall in July signaling a lower demand for raw materials.

Caixin China General Manufacturing PMI published by Markit decreased from 49.4 to 47.8 last month, marking its fifth consecutive reading below the 50.0 level, which delimits the negative and positive expectations in the industry. The report has sent the copper futures into a bearish trend after its release during low-volume trading at 1:45 GMT.

With weakening manufacturing sector in China — a country seen as the world’s leader of industrial metals’ consumption — copper has little incentives to rise. The Chinese declining stock market is also pressing down on the commodities. Shanghai Composite Index lost more than 1 percent today.

Copper fell from $2.3423 to $2.3178 per pound on CME as of 8:46 GMT today. It has reached its daily low at $2.3118 per pound — the record minimum price since July 15, 2009.

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