China economic slowdown fears copper continues to slide

The London Metal Exchange (LME) copper fell in February 28th, February the whole little change, because of the Chinese worries about an economic slowdown continues, but American board of Governors of the Federal Reserve (FED) chairman Yellen's speech to the USA eased concern over the economic outlook, limiting the decline in copper. Copper for three months to close no deal, buying finally fell 0.28%, to $7005, on Thursday fell to near three month lows of $6993.50.
Yellen said Thursday, abnormal winter cold seems to lead to USA economy recently presented signs of weakness. This suggests that the central bank will continue to reduce the stimulus measures. Chinese Manufacturing Purchasing Managers Index in March 1st, the National Bureau of Statistics Survey Center for service industry and Chinese Federation of logistics and purchasing released shows, in 2014 February Chinese manufacturing PMI was 50.2%, 0.3 percentage points lower than last month, is still higher than the critical point, indicates that China's manufacturing industry continued expansion trend, but growth has slowed down.
America Department of Commerce announced Friday, American fourth quarter gross domestic product (GDP) than the annual rate of correction value is a growth of 2.4% (2.5% estimate for growth, the prior + 3.2%). Metal prices have no reaction. Market attention now to Chinese economic data and next week's two sessions, and Ukraine political instability also suppressed the investor appetite for risk.
Shanghai copper futures 28 days to adjust to shocks. 1405 main contract closed at 49280 yuan / ton, down 60 yuan. On the news surface, Yellen speech is not new, stressed that the Federal Reserve to maintain the existing policy, the basic metals rebound insipid. China's manufacturing industry in February PMI 50.2%, and indicates that China's manufacturing industry continued expansion trend, but growth has slowed down. Technically, copper slightly stabilized, KDJ index J line turn head upward, downward momentum weakened. Last week the cardinal copper copper continued to decline, short-term or will continue weak operation situation.
Spot, Shanghai electrolytic copper spot agio reported 280 yuan / ton to discount 120 yuan / ton, flat water, copper prices 48900-49150 yuan / ton, the premium price 48980-49260 yuan / ton of copper. Shanghai copper futures first trading session performance is still smooth, spot transactions agio yesterday narrowed, supply is still abundant, well no longer hold strong copper prices, but the middleman receiving interest has been compromised. The RMB exchange rate fell to 6.19, copper slide 200 yuan / ton, the market once again paohuo. Especially good copper premium does not receive slightly enlarged, but the Pingshui Copper discount narrowed slightly visible bargain downstream procurement, but overall still cannot reverse the pattern of supply exceeding demand.