Copper prices fall on China slowdown

© Scanpix/FP

Copper prices are highly dependent on China consumption and market deficit. Recent fall in China's PMI led to a decrease in copper prices. LME copper currently is traded at $8000/tonne falling by more than 20% since the beginning of 2011. However, the expected 250,000 tonnes copper deficit in 2012 may stimulate the growth of prices, however in case the metal's consumption also decreases, the deficit will be lower thus pushing the copper prices down.