What is the reason of different behavior of copper and iron ore?

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What is the reason of different behavior of copper and iron ore?

August 07, 2018 - 09:45
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Iron ore and copper are two metals playing significant role in development of Chinese economy, and today those two metals are showing different behavior. While iron ore is growing, copper is under serious pressure, Bloomberg reports.

Photo © Martin Str, CC0 1.0

Iron ore and copper are two metals playing significant role in development of Chinese economy, and today those two metals are showing different behavior. While iron ore is growing, copper is under serious pressure, Bloomberg reports.

Yesterday in Singapore iron ore futures grew closer to $70 a ton level and were traded 2,8% higher at price of $69,57 in the morning in London. On the other side, copper lost 1,4% of its price and cost $6120 per ton at London Metal Exchange.

Copper recently loses its positions due to trade tensions, which threaten economc growth and demand. On contrast, iron ore is growing amid China's policy to reduce pollution, which caused demand increase for higher quality ore.

Experts view copper as more global commodity, which is also some kind of barometer of world economy, and therefore, it is more hurt by trade war threats.