China’s Hand in Copper’s Collapse

Dr. Copper is sick and China’s economy isn’t doing anything to better the situation. Copper prices haven’t fared well since the end of last week. The red metal took its first hit on Friday, and by Wednesday, three-month copper on the London Metal Exchange had declined to its lowest level since July 2010, changing hands at $5,376.25 per tonne. According to The Wall Street Journal, the metal has given up 13 percent of its price year to date, shedding the bulk of that amount over the course of the last week.

Copper has long been considered the bellwether of the economy, a characteristic that earned it the nickname Dr. Copper. However, of late it seems that the red metal has found itself entangled in China’s financial system and is now feeling the pressure as the Asian country’s fragile economy continues to be tested.