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MTECHTIPS:-Copper tumbles to 6-year low amid China stock market melt-down

MTECHTIPS:-Copper tumbles to 6-year low amid China stock market melt-down

Copper prices tumbled to the lowest level in more than six years on Tuesday, as steep declines on Chinese stock markets dampened appetite for the red metal. Copper for September delivery on the Comex division of the New York Mercantile Exchange sank to an intraday low of $2.281 a pound, a level not seen since July 2009, before trading at $2.287 during morning hours in London, down 3.4 cents, or 1.45%. The Shanghai Composite tumbled 6% in volatile trade on Tuesday, with losses accelerating towards the end of the session despite fresh efforts by the government to calm the market. China’s central bank injected the largest amount of cash into the financial system on a single-day basis in almost 19 months in an effort to offset outflows in the wake of a weaker yuan. Market players are concerned that the plunge in the stock market could spread to other parts of the Chinese economy, triggering fears that the Asian nation’s demand for the industrial metal will decline. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. A day earlier, copper lost 3.0 cents, or 1.3%, to end at $2.321 as lingering concerns over the health of China’s economy drove down prices.
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