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In opinion of Researchers at UOB Group in the Quarterly Global Outlook, Copper could be posed for further weakness in the near term.

Key Quotes

“Copper is a key lit ­mus commodity for the health of the global economy and is of course not spared by the growth slowdown. As Chi ­na’s manufacturing PMI drifted back be ­low the expansionary 50 level, the 3M LME Copper also fell as scripted below the USD 6,000 / MT level. Thereafter, despite our cautious expectations of fur ­ther weakness towards the USD 5,500 / MT level, 3M LME Copper appeared to be consolidating around the USD 5,800 / MT level instead”.

“Overall, while there is widespread diver ­gence in the industrial metals complex, we continue to see on-going weakness in 3M LME Copper, mainly due to global growth risks. As such, we see 3M LME Copper pulling back to USD 5,600 / MT in 4Q19, USD 5,400 / MT in 1Q20 and USD 5,200 / MT across 2Q and 3Q20″.