Copper Dropped To 2-Month Low

Copper fell to its lowest level in two months. Commodities fell to the bottom of two months after news from China and the FED.

Copper prices dropped to 2-month low, with the hawkish attitude of the US Federal Reserve (FED) and China's steps to reduce commodity prices. St. Louis Fed Chairman James Bullard warned on Friday that the risk of inflation could lead to higher interest rates next year. China, on the other hand, announced that it would use the state's commodity stocks to reduce prices and took some measures to prevent speculative purchases. Copper stocks in London hit an eight-month high on Friday, while copper orders on the London Metal Exchange fell 56 percent on Monday to the lowest level since 2011. Commerzbank Analyst Daniel Briesemann said, "Metal prices have taken a lot of hits lately. Since the beginning of the month, there has been non-stop copper shipments to the London Metal Exchange, indicating that supply is more than demand." While copper fell by 1.5 percent to $9,145 per ton on Monday, it lost nearly 9 percent in value last week.