Data from China does not help copper. Trade conflict in the background
Another weak data from the Chinese economy is reflected in the price of copper. From mid-February to today's publications, the market is in consolidation, which directs the price at the bottom of the price channel. Copper in 3-monthly deliveries it is priced lower by 0,2 percent, after 6.414 USD per ton.
Weak data from China
In China (in dollars) exports in annual terms fell in the second by 20,7 percent, after the increase previously by 9,1 percent. Analysts expected a lot of smaller fluctuations that could take place around the 5,0 percent. Imports dropped by 5,2 percent, after the previous subsidence by 1,5 percent. Weak results from the Chinese economy have affected copper prices. They slowed down the upward trend created at the beginning of February. Discounts, however, are not dynamic. In a broad view of the market, temporary pessimism should not give way to the continuation of the trend. What were they caused by? The weaker data was, among other things, the result of the Chinese celebration of the beginning of the New Moon Year. In addition, all the time behind our backs we have a tense situation in the field of trade war with the US.
Negotiations in progress
Investors are worried about the fate of US-China negotiations. Donald Trump is increasingly putting pressure on the US administration to accelerate the conclusion of an agreement with China. Where did this rush come from? The deficit in US trade with China reached a record level this year. It amounted exactly to 419,2 billion USD.
Can the lack of understanding and poor readings from China harm copper on a larger scale? Looking purely "technically" at higher intervals, copper prices remain in an optimistic trend. Nevertheless, the weakening of the Chinese economy and the strengthening dollar may slightly harm this metal.