By HY Markets Forex Blog

Futures for the red metal was seen declining as it cleared its first weekly gain since August on concerns over the global economic slowdown, including the EU economy after  the President of the European Central Bank (ECB) Mario Draghi said there are signs the euro-block’s economy recovery is losing momentum. The rebounding US dollar and the downbeat report from Germany also weighed on the metal.

This week, a report released showed that the factory output from Germany, the third-largest consumer of the commodity, dropped 4% on a monthly basis in August, while the country’s industrial orders declined the most since January 2009 to 5.7% in August. 

Delivery for Copper in the three months on the LME fell by 1% to $6,654.25 a metric ton in Hong Kong. While December contract in New York declined 0.6% to $3.0105 a pound. In Shanghai, futures for the red metal for December dropped 1.1% to close at $7,705 a ton.

Copper has advanced 0.2% this week as the green heads for a 1.1% decline, the biggest weekly decline since August. Meanwhile the International Monetary Fund (IMF) lowered its global economic growth forecast earlier this week, which could have also had a negative impact on the metal.

“Premiums in the copper market have slumped to their lowest level since June last year, pointing to still weak conditions in the copper market. Despite the current low copper premiums, Aurubis (Europe’s biggest copper smelter) has announced 2015 premiums for copper cathode of USD110/tonne, 40-50/tonne above current spot premiums,” said analysts at ANZ.

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