uploads///COMEX Copper

Base Metals Tumble on Weak Copper Import Data

By

Updated

Base metals tumbled on November 9, 2015, due to weak Chinese copper import data.

Article continues below advertisement

COMEX copper hits six-year low

LME (London Metal Exchange) 3M copper fell by 0.46% on November 9 and closed at $4,964 per metric ton. LME copper prices have been in a downtrend since October 15, 2015, due to sluggish Chinese economic growth and global demand concerns.

On November 9, December delivery contracts of copper in COMEX fell by 0.54% and closed at $2.23 per pound. This is the lowest level for COMEX copper since July 13, 2009.

After rising consistently for a week, aluminum fell

LME 3M aluminum fell by 0.72% on November 9, 2015, closing the day at $1,512 per metric ton. After showing consistent gains last week, aluminum fell on November 9 due to weak sentiment surrounding the base metals.

LME 3M nickel fell by 0.5% on November 9 and ended the day at $9,580 per metric ton. LME 3M nickel has been closing at a loss for the past five trading sessions. Since the beginning of the month, nickel has been in a complete downtrend and has fallen by 4.8%.

LME 3M zinc fell by 1% on November 9 and closed the day at $1,644 per metric ton, reaching its lowest level since September 28, 2015. LME 3M zinc’s next support level is $1,600 per metric ton.

On November 9, LME lead and tin fell by 0.15% and 0.44%, respectively. LME tin closed the day at $14,575 per metric ton, which is its lowest price level since September 1, 2015.

Effects on companies and ETFs

Almost all base metals mining companies fell on November 9, 2015. Major base metals mining companies such as Glencore (GLEN), Alcoa (AA), and BHP Billiton (BHP) ended the day at a loss.

Base metals ETFs such as the PowerShares DB Base Metals ETF (DBB) and the SPDR S&P Metals & Mining ETF (XME) fell on November 9 due to the weak performance of base metals.

Advertisement

More From Market Realist