Concerns that the Federal Reserve will soon discontinue its stimulus plan, thereby curbing copper demand, pushed the red metal down on August 19. According to Bloomberg, copper for three-month delivery on the London Metal Exchange dropped $87.74 to $7,311.50 a tonne, or $3.31 a pound.
Similarly, in New York, copper futures for September delivery fell $0.034 to $3.3290 a pound, The Wall Street Journal reported.
“Tapering is still in the air, and real Chinese end use of copper doesn’t seem to be that strong,” David Wilson, a London-based analyst at Citigroup, told Bloomberg. China is the largest consumer of the commodity in the world.