Chart of the Day: Worries about waning copper demand pressurize prices

The Singapore Mercantile Exchange says renewed euro zone debt fears are adding to the downward bias.

SMX reported:

Concerns about weakening copper demand from China and renewed euro zone debt fears continued to pressurize copper prices. The July 12 contract fell 4.4% to close at USD 7,419 on May 31, against the previous fortnight close of USD 7,756.

The HSBC Flash China Manufacturing PMI fell to 48.7 in May from 49.3 in April, reaching a 2-month low and indicating continuing contraction in manufacturing activity. Market sentiment was further tempered by news from China’s official Xinhua News Agency that Beijing had no plans for extensive stimulus measures.

Renewed euro zone debt fears, underlined by Spanish banking problems, added to the downward bias of base metals prices during the past fortnight.