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MTECHTIPS:-Copper Sinks To Six Year Lows As Chinese PMI Disappoints Again

MTECHTIPS:-Copper Sinks To Six Year Lows As Chinese PMI Disappoints Again

Copper sinked to six year lows on LME today, while other exchanges also faced collapse after China reported yet another depletion in the PMI numbers. The official PMI numbers of China declined in the month of July 2015 causing panic selling in commodities like Copper and Aluminium. The Caixin China manufacturing purchasing manager’s index, or PMI, fell to a final reading of 47.8 in July, a two-year low. A number below 50 indicates economic contraction. This followed Saturday’s announcement by the government’s National Bureau of Statistics that China’s official PMI slipped to 50 in July from 50.2 in June.The month of August 2015 will be closely eyeing the reports on Chinese economy. The prices of Copper have already faced lot of pressure and this is unlikely to see any major gains in coming months as well. The traders will be monitoring the decisions of Federal Reserve, which is yet to decide the exact deadline for the interest rate hikes. The factors like surplus in world Copper markets are yet to be harnessed fully and in coming months the position will be more clear. Among other metals, Aluminium production is on an elevated levels and drastic respite from this is unlikely even though there has been some declines noted. However the prices will be keenly eyeing the upcoming events in terms of the production especially from China. In Aluminium, production numbers are worrisome and can halt the journey in coming days.
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