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MTECHTIPS:- Copper Faces Onslaught By Speculators, Reaches INR 330 on MCX

MTECHTIPS:- Copper Faces Onslaught By Speculators, Reaches INR 330 on MCX

MCX Copper ended the day at Rs 330.90 on 19 August 2015 against 336.50 per kg on 17 Aug 2015. The continuous onslaught by speculators and issues pertaining to Chinese demand has resulted in Copper declining further down. After the market panicked by the recent devaluation of Chinese currency, Copper prices are still not able to recover. China consumes more than 42% of Copper in the world, the move of devaluation of Chinese currency is expected to bring heavy Copper supplies into the markets that will shave the demand. This month, China’s exports posted a surprisingly steep fall in July while imports slumped again, as the world’s second largest economy was pressured by weak demand at home and abroad. Exports slid 8.3% in the month from a year earlier, reversing a gain of 2.8% in June. This forced the Chinese government to devalue its currency. Imports fell for the ninth month in a row, dropping 8.1% in July from a year earlier, after a decline of 6.1% in June. The nation’s export sector had been a major contributor to growth in past years. But that is no longer the case, hampering economic growth. China’s economic growth in the second quarter came in at 7% year-over-year better than expected but still the slowest pace in six years. That reflects a combination of overcapacity in traditional industries, a weak property sector and little help from exports.

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