Copper hits new low

Copper prices have hit a six year low earlier this week, briefly slumping below the US$5000 per tonne watermark.

It came on the back of weak Chinese markets, which have been on a downward spiral over the last month.

Much of this fall has been driven by slow growth in the housing market, which in turn means less demand for copper, with the overall economy only growing 6.3 per cent instead of the seven per cent expected.

Currently China is responsible for about 45 per cent of the global demand for copper.

Prices overnight fell to US$4983 per tonne on the London Metal Exchange, eventually settling at around US$5035, as the Shanghai Composite Index fell more than six per cent last night.

The last time prices fell this low it heralded the start of the global financial crisis.

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