On Tuesday copper prices fell steeply, after data showed that China's economy grew at the slowest pace in 24 years last year.
On
the Comex division of the New York Mercantile Exchange, copper for
March delivery slumped 4.9 cents, or 1.87%, to trade at $2.568 a pound
during European morning hours, after hitting a session low of $2.563.
Yesterday copper shed 2.5 cents, or 0.97%, to settle at $2.591 a pound. Copper hit $2.423 on January 14, a level not seen since June 2009. Futures were likely to find support at the $2.517, the low from January 15, and resistance at $2.634, the high from January 16.
Official data released earlier Tuesday indicated China’s economy grew 7.4% in 2014 from a year earlier, the slowest pace since 1990. In the fourth quarter, China's economy grew at an annual rate of 7.3%, beating expectations for 7.2% and holding steady from the prior quarter.
Industrial production rose by an annualized rate of 7.9% in December, compared to forecasts for a 7.4% increase, after a 7.2% gain in the previous month.
The second biggest economy is the world’s largest copper consumer, accounting for almost 40% of world consumption.
Meanwhile, the International Monetary Fund cut its global growth forecast for 2015 to 3.5% from a previous estimate of 3.8%, citing slowing economies in China, Russia, the euro area, Japan and oil producers.
Elsewhere, gold futures for February delivery tacked on $2.20, or 0.17%, to trade at $1,279.10 a troy ounce, while silver futures for March delivery dipped 2.7 cents, or 0.15% to trade at $17.72 an ounce.
