Copper getting hammered by coronavirus

The average person on the street would likely never draw a straight line between the outbreak of a deadly flu-like virus and the price of metals - but that's precisely what's happening thanks to the coronavirus emergency in China.

Copper fell sharply again on Monday as China as the country struggles to control the infectious outbreak. China consumes half the planet's copper.

In just over a week, the price of copper has dipped more than 10% to $2.59USD/pound. The metal has now suffered its biggest price drop in more than six years. 

BMO Capital said in a research note that the Beijing’s response to the outbreak, assuming it can be brought under control, could be significant. The investment bank believes the Chinese government ~6% growth target for 2019 “is likely non-negotiable in order to meet the doubling of per capita GDP promised by President Xi in 2020 versus 2010”.

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