Copper futures tracked the downward dive of crude oil futures on Wednesday as the reddish metal slipped for the second time in three trading sessions, according to Bloomberg.
Also impacting the poor performance of the base metal is the fact that markets in its top consumer are closed this week. China, which accounts for roughly 40 percent of the world’s consumption, is observing the Lunar New Year.
“There’s a little nervousness in the markets over energy prices, and that’s affecting copper,” futures specialist Sterling Smith with Citigroup Inc. in Chicago told the news source on Wednesday. “The dollar being back in positive territory also isn’t creating an ideal environment. None of this is giving any impetus for buyers to chase the market.”
At 4:38 p.m. on Wednesday, copper futures fell 0.11 percent, a 0.004 cent loss to $3.74 per pound.
Reuters reports that thus far this week copper futures were down about 0.4 percent despite having gained roughly 1.2 percent this month, which is largely due to the base metal’s stronger performance during the first few trading sessions of the month.
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