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Copper prices hit their all-time low in a year on Thursday, amid fears that a global trade war may weigh on global supply chains and slow down the global economy.
The United States imposed tariffs on imports of steel and aluminum from China, the European Union and Mexico. The EU, China and Mexico responded with their own tariffs.
"The demand still seemed very good, [but] over the months, trade tensions began to weigh on growth," Suki Cooper, precious metals badyst at Standard Chartered
The metal was also close to the market bears, since he was trading close to 20% of his 52-week high. Copper climbed nearly 32% last year as investors bet on synchronized global economic growth around the world.
Citi badysts, however, believe that copper is becoming a buy for investors. "The current big sales, fueled by increasing trade friction between the United States and China, create a longer-term buying opportunity: we look beyond the potential trade war on market fundamentals more long-term copper, "said Gina Francolla, Patti Domm and Jeff Cox, NRC, for this report
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