COPPER COMES A CROPPER
The fall in the price of copper is being linked to China’s alleged use of the metal as a blunt instrument to help Chinese authorities restore balance in the Chinese economy. According to the Financial Times of London, copper has been used in the Chinese economy as collateral security in many financial transactions. In instances of default, creditors put the copper on the market, which has resulted in copper moving into a supply surplus. Some believe the situation may worsen in the coming months, particularly if China’s growth continues to decelerate.
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