Copper continues to slump, slips below $4,500 for first time...

Copper continues to slump, slips below $4,500 for first time since 2009.

Published: Nov 23, 2015 8:06 a.m. ET

Copper futures slumped to six-year lows for the third session in a row in London on Monday, as the dollar appreciated and investors sold down their positions.
The London Metal Exchange’s three-month copper contract was down 2.3% at $4,474 a metric ton in midmorning trade, having slipped below the key $4,500 a ton level for the first time since May 2009.
In the boom times of 2011, copper traded above $10,000 a ton, since when it has lost 55% of its worth.

Among the reasons for its most recent troubles has been a stronger dollar.
The WSJ Dollar Index BUXX, -0.21% was recently up 0.40% at 90.65. Copper is priced in dollars, and it grows more expensive for other currency-holders to buy as the greenback strengthens.
Additionally, general risk-aversion on Monday saw investors jettison some of their holdings in copper, considered a so-called risk asset.
“The rout in the metals continues, and it looks like deleveraging is going on at a large scale as those involved in the market reduce their exposure,” said William Adams, head of research at Fastmarkets, in a note.
The current near collapse in metal prices is hurting miners, with the FTSE 350 Mining Index down 1.24%. Glencore PLC GLEN, +3.94% was trading down 2.5%, Anglo American PLC AAL, +2.46% was 2.6% lower and Rio Tinto PLC RIO, -0.26% RIO, +0.41% RIO, -1.48% was down 1%.
Meanwhile, nickel hit another 12½-year low on Monday, weighed down by weakness in copper, the stronger dollar, oversupply and lackluster demand. The LME’S three-month nickel contract was down 4.9% at $8,300 a ton.
Looking ahead, metal prices are expected to continue heading lower.
“Given the downward momentum, prices may well continue lower until some development prompts short-covering,” said Adams.
All the other base metals were lower at the start of the week.
Aluminum was down 0.5% at $1,439.50 a ton, and zinc was down 3% at $1,518.50 a ton. Lead was down 1.8% at $1,565 a ton, a 5½-year low. Tin was down 1.1% at $14,480 a ton.

DSD. since artlicle published Cu up 2.2%. Ni at 12.5 yr low!! Incredible.

http://www.marketwatch.com/story/co...low-4500-for-first-time-since-2009-2015-11-23