Funny, for many people it still feels like we are in a recession, now we’re looking at another one?
China buys more copper than anyone to make the things China makes. If China’s manufacturing slows so to do inflows of copper.
It’s hard to get good information out of the Crony’s Republic of China. But we do know when they stop buying copper, and what that generally means.
Add a Russia which is now in full blown economic crisis along with a handful of other petro-states, and the surprise move by the Swiss National Bank this morning, and things feel a bit shaky.
There are issues in the States too.
In addition to the oil industry in the middle of the country which all of a sudden is in challenging times (Canada too is battening down the hatches), the Fed reported today that manufacturing in the Mid-Atlantic fell by a good bit more than was expected.
Solid rumblings. Caution is the word.
(From The Guardian)
The copper market crashed overnight to its lowest level since the middle of the financial crisis in 2008, fueling fears that the global economy is slowing more sharply than many experts had anticipated.
Wednesday’s drop is the sixth consecutive decline in copper prices. Currently trading at around $5,560 a ton, the prices are causing significant pain to mining companies like Glencore, whose stock responded to the copper crash by hitting a record low.
Like oil, copper has a deep effect on the world economy because it is key for phone lines, cables and other infrastructure. It is also important to several world economies; the world’s largest copper producers, in order, are Chile, China, Peru, the US and Australia.