Even though London copper prices rose on Friday, it experienced the biggest monthly fall since November 2015.
On the London Metal Exchange, copper rose 0.3% to $5,601 a ton after 12 continuous sessions of losses. This month, it is down by 9.3%. Copper has seen the most pain among the significant commodities since the virus outbreak in China. It has lost around 10%.
Fitch Solutions said that while there’s a belief that the 2019-Nov will likely be better managed by the Chinese authorities and is likely to prove less of a public health threat, we still see downside risks to the economy from the epidemic.
Investors say, Chile, the largest copper producing country, may have overestimated the impact coronavirus on metal demand. The nation’s currency weakened as much as 1.2% Thursday.
The impact on copper demand may start showing in the auto industry. BMW said it’s halting production at three China sites until February 9, while Volkswagen’s joint venture in the country has taken the same move.
China is the world’s biggest copper consumer. Epidemic fears have decreased metal’s demands. As the export orders fell, growth in China’s factory activity stumbled.
Coronavirus has killed 213 people
China has reported a total of 9,709 cases of pneumonia caused by new coronavirus infections. At least 213 people are dead. There are more than 140 cases confirmed outside of China. Recently, Chinese scholars published a study, announcing that the infection has clinical signs of respiratory diseases like SARS. National Health Commission of Traditional Medicine announced that the new Coronavirus is mainly spread through respiratory droplets and through contact. An incubation period generally lasts 3 to 7 days, with a maximum of 14 days. The elderly and people have a severe illness after infection; children and newborns also develop the virus. The symptoms of children are moderately mild. The Chinese government is taking drastic measures to stop the spread of the disease across the country, including prohibitions on travelling and extending the Lunar New Year Holiday.
People’s Daily, the biggest newspaper group in China, announced that the new Coronavirus is the same as SARS. According to Analytics, if the virus is as deadly as SARS (the Sudden Acute Respiratory Syndrome), demand on commodities could drop to a great extent.