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Fall of Copper; Decline in Imports of Copper in China & Fertilizer in India

August 11, 2009 at 19:49 by Vladimir Vyun

Copper prices slid today, erasing previous gains, as the dollar advances against the euro. Earlier there was speculation that a restoring world economy will support prices for the metal, but reduced demand for commodities as hedge against inflation caused prices for copper decline. September delivery for copper futures slid $0.0265 (1 percent) to $2.744 per pound as of 11:28 on the Comex division of the New York Mercantile Exchange.

China’s imports of copper falls for the first time in six months. Demand for the metal in China spurred by government caused prices to rise. But as overseas prices increased faster than those in China importing copper began incurring losses. China may stop stockpile metal after increase in prices. Imports dropped to 406,612 metric tons in July (15 percent) from 477,217 tons in June.

Declining prices for fertilizer in India may help China to negotiate better prices. India’s weakest monsoon rains, the main source of irrigation, in five years decrease demand for fertilizer in India. India’s purchase price for potash, used to grow rice, soybeans and sugar cane, was $460 (26 percent less than last year’s price) per ton compared to $635 per ton offered initially by suppliers. As suppliers lowered fertilizer prices for India, China expects that it can negotiate lower prices too.

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