Copper remains under pressure on the back of weak data from China. Copper felt it last week. However, the cost of copper still managed to gain a foothold above $2 last week. Yesterday, copper fell below $2 and finished trading at a $1.978. Reducing the cost of copper has been caused by weak Chinese data. Recall that China consumes about 45% of the world’s supply of copper. Weak business activity index in the manufacturing sector (PMI Caixin) raises concerns about not only the state of the Chinese economy but also about the world economy. The producer price index also shows a negative trend that puts additional pressure on copper. At the end of December, it was down by 5.9%.
Now copper has support at $1.9665 (6.5 years low). If copper overcomes this level down, it will be able to continue to move down to around $1.9350 (low of 5 April 2004). In addition, the 50-interval moving average is directed downward on daily and intraday charts.