Copper to rebound from 9-week low on Chinese home appliance sales
After hitting a 9-week in Friday trading copper is set to rebound on increased sales of home appliances on the Chinese market.
December futures for copper, the most actively traded contracts in year, slumped 2% to end at $3.4815 a pound on the Comex division of the New York Mercantile Exchange, hitting their lowest settlement since 4 September.
Copper had been lifted earlier in the week by positive Chinese manufacturing data for the month of October, as well as upbeat US labor market and regional factory activity figures.
According to Kitco a new note by Barclays Capital says September data presents positive signals for home appliance purchases, with official data indicating refrigerator, air conditioner and washing machine production gained 8%, 14% and 25% YoY respectively.
Barclays believes increased purchases of home appliances by Chinese consumers raises the likelihood that restocking will boost demand for copper.