Copper Drops to $7,138 a Tonne on Chinese Demand Concerns

Copper prices on the London Metal Exchange dropped 0.5 percent or $35.69 to $7,138 a tonne on Tuesday, according to The Wall Street Journal. The People’s Bank of China conducted repurchase agreements for the first time in eight months recently, locking up capital in the financial system. This news hurt copper prices, as China is the country with the largest demand for the metal.

“The run up in base metals seems to have halted for now,” William Adams, head of research at FastMarkets.com, told the Journal. “On balance we have viewed the rebound in base metals as counter trend moves, so would not be surprised if base metals prices consolidated at lower numbers.”

Copper for March delivery fell 0.1 percent or $0.003 to $3.261 per pound on the Comex exchange in New York, according to Bloomberg.