Copper, Zinc plumet over China fears Chinese Concerns Send Base Metals Sharply Lower
Friday March 7, 2014 8:44 AM
Base metals are sharply lower on Chinese concerns. Bellwether copper fell as far as $6,847 a metric ton on the London Metal Exchange, its weakest level since July. “Base metals have been under pressure all morning in London, reacting to the first onshore Chinese company default,” says Steve Scacalossi, director and head of sales for global metals with TD Securities. “Shanghai Chaori Solar Energy Science & Technology Co. failed to pay interest due today on bonds….Nonperformance by Chaori has now fueled speculation as to how many more companies may be in a similar situation and what negative impact that could have on the economy.” Edward Meir, commodities consultant with INTL FCStone, also cites a “belated reassessment” of a Chinese economic plan announced by authorities this week. He expresses skepticism about the Chinese leadership’s forecast of 7.5% economic growth for 2014. As of 8:38 a.m. EST, three-month copper was down $180, or 2.6%, to 6,870 a metric ton. Aluminum, nickel, zinc, lead and tin were also weaker.