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Copper Carnage Continues - Bloodbath At China Open

Tyler Durden's picture




 

Update: COMEX Copper trades $242.35

Heavy volumes in the futures markets have smashed COMEX Copper prices to as low as $251.90 as China opens. This is the lowest level for copper since July 2009... LME prices are as low as $5,500/mt... Blame OPEC! In fact - we suspect - blame massive rehypothecation hedge unwinds...

  • *COPPER DROPS BELOW $5,500/MT ON LME
  • *COPPER DROPS AS MUCH AS 5.7% ON THE LME

Total Carnage

 

This is not a normal China open...

 

As Bloomberg reports, the catalyst for this latest leg down appears to be World Bank global growth forecast cuts...

Copper tumbled below $5,500 a metric ton for the first in five years as a cut in the World Bank’s global growth forecast fueled speculation demand for raw materials won’t be enough to eliminate a supply glut.

 

Copper dropped as much as 6.6 percent and nickel slid 2.2 percent. The world economy will expand 3 percent in 2015, according to a World Bank report released today, down from a projection of 3.4 percent in June. The Bloomberg Commodity Index of 22 energy, agriculture and metal products slid to the lowest level since November 2002 yesterday after dropping 17 percent last year.

 

“The news everywhere is doom and gloom,” said David Lennox, a resource analyst at Fat Prophets in Sydney. “Prices are going to keep sinking.”

 

Copper for delivery in three months on the London Metal Exchange dropped as much as $388 to $5,472 a ton, the lowest intraday price since July 2009. The metal was trading 6.1 percent lower at $5,501.25 ton at 9:54 a.m. in Hong Kong.

 

All other metals on the LME declined, with nickel dropping to the lowest since February 2014.

*  *  *

Maybe commodities are on to something...

 

Naah - stocks are all-knowing...

*  *  *

Copper's cost curve is coming under pressure...

 

*  *  *

Crude is also under pressure...

 

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Tue, 01/13/2015 - 21:46 | 5658167 buzzsaw99
buzzsaw99's picture

dr. copper calling in sick?

Tue, 01/13/2015 - 21:55 | 5658198 4shzl
4shzl's picture

Dr. Copper has the flu -- the same one knocked 5+% off the world's population 95 years ago.

Tue, 01/13/2015 - 22:02 | 5658223 THX 1178
THX 1178's picture

When doctor copper gets sick where does he go? The silver sugeon? The gold gynecologist? Platinum podiatrist?

Tue, 01/13/2015 - 22:08 | 5658254 NoDebt
NoDebt's picture

To the Oil Oncologist where he finds out the entire body of financialization is riddled with cancer.

Tue, 01/13/2015 - 22:15 | 5658278 kowalli
kowalli's picture

joyflation right around the corner

Tue, 01/13/2015 - 22:21 | 5658298 Soul Glow
Soul Glow's picture

Is that when Janet beats off Obama?

Tue, 01/13/2015 - 22:25 | 5658305 zaphod
zaphod's picture

I don't know what you guys are bitching about.

All the FED has to do is lower rates to get everything back on track, has worked every time before. They have plenty of room to cut.

/s

Tue, 01/13/2015 - 22:26 | 5658317 kowalli
kowalli's picture

they can go to -0.2 like in Europe.

Tue, 01/13/2015 - 22:54 | 5658415 daveO
daveO's picture

Then, like in Summer 2011, Boehner will cave on the next huge budget increase. Thus assuring the FED plenty of new issuance to purchase. Guaranteed to reoccur until dollar collapse.

Wed, 01/14/2015 - 01:30 | 5658798 bunzbunzbunz
bunzbunzbunz's picture

XOM is too big too frail.

Tue, 01/13/2015 - 22:30 | 5658335 johngaltfla
johngaltfla's picture

Here comes the "Oh Shit" moment banksters were trying to stall....

Tue, 01/13/2015 - 22:24 | 5658309 Bossman1967
Bossman1967's picture

And here I was thinking the manipulators all commited suicide someone call me a dr. Kilvorkian is dead rite? And I was also thinkin the collapse was close not yet I see but hey I got a good job today so I can continue staacking and being a zombie in the workplace cause nobody wants to hear whats really going on out there there is no islamic terrorist its people like us extremists causing all these problems. I give up on the sheeple and ready to give up on this collapse theory sarc

Tue, 01/13/2015 - 22:48 | 5658393 johngaltfla
johngaltfla's picture

FWIW, it's all the base metals. Aluminum is getting crushed and the rest are just drifting lower and lower, day by day.

Tue, 01/13/2015 - 22:43 | 5658366 Bunga Bunga
Bunga Bunga's picture

One after the other all infecting them.

Tue, 01/13/2015 - 22:02 | 5658224 Grouchy Marx
Grouchy Marx's picture

Really sick - all the rehypothecation unwinds should have driven the price up; a sharp drop, coupled with a similar drop in the dry Baltic index, says the true world economy has just stumbled. 

The Canary in the coal mine may have just expired.

Tue, 01/13/2015 - 22:04 | 5658242 KnuckleDragger-X
KnuckleDragger-X's picture

No,no, no...he's merely pining for the fjords.....

Wed, 01/14/2015 - 01:22 | 5658787 Dead Canary
Dead Canary's picture

I smell gas. Does anyone else smell gas?

Wed, 01/14/2015 - 01:31 | 5658802 bunzbunzbunz
bunzbunzbunz's picture

LNG. Ships well.

Tue, 01/13/2015 - 21:49 | 5658172 jubber
jubber's picture

Dow off 80 S&P down 10 unusual move in the overnight session and Oil not doing anything???

Tue, 01/13/2015 - 22:18 | 5658284 Soul Glow
Soul Glow's picture

Oil's never going to zero again!

Tue, 01/13/2015 - 22:28 | 5658327 Bay of Pigs
Bay of Pigs's picture

If you ever wondered what the average American's intellience is on economic and financial issues head on over to the Yahoo board and check out these comments. Almost 100% of them think crashing oil is "good" and has no "negative" impact on the economy and comsumer whatsoever.

I shit you not...

http://finance.yahoo.com/news/5-states-most-hurt-falling-135533601.html;...

Tue, 01/13/2015 - 22:35 | 5658341 Just Take It All
Just Take It All's picture

probably the same jackoffs that are bidding the e-minis right now, thinking about the glorious savings to the consumer from lower copper prices.  i swear this planet deserves an asteroid.  one huge merciful asteroid.

Tue, 01/13/2015 - 22:39 | 5658358 Bay of Pigs
Bay of Pigs's picture

Glorious savings? That is exactly what they are saying.

I asked about layoffs, cutbacks and lost spinoff jobs and was roundly criticized.

Tue, 01/13/2015 - 22:59 | 5658432 daveO
daveO's picture

Well, it's Yahoo. It carries the exact same propaganda as the old MSM. So, I'm sure there are plenty of DC operatives working there. 

Tue, 01/13/2015 - 23:21 | 5658496 Bill of Rights
Bill of Rights's picture

Well that's because you brought intelligence into their conversation.

 

Aloha bro

Tue, 01/13/2015 - 22:50 | 5658397 Bunga Bunga
Bunga Bunga's picture

They are don't making anymore oil.

Tue, 01/13/2015 - 21:50 | 5658178 surf0766
surf0766's picture

It's 1936  not 1937  we have a little time to go. History is repeating...

 

Tue, 01/13/2015 - 23:15 | 5658483 FrankieGoesToHo...
FrankieGoesToHollywood's picture

At least we have a few years until 1939.  fuck.

Tue, 01/13/2015 - 21:53 | 5658179 g speed
g speed's picture

next up----black swan margin calls on rehypothecated non-colateral?

Tue, 01/13/2015 - 21:55 | 5658200 surf0766
surf0766's picture

Next up Putin takes more of Europe under his facist proaganda world tour before showing his true face as the hardline communist he is

 

Tue, 01/13/2015 - 21:59 | 5658213 Charles Nelson ...
Charles Nelson Reilly's picture

You could easily replace "Putin" with ""Obama" & get the same effect

Tue, 01/13/2015 - 22:10 | 5658263 surf0766
surf0766's picture

Agreed

Tue, 01/13/2015 - 22:31 | 5658330 Soul Glow
Soul Glow's picture

next up----black swan margin calls on rehypothecated non-colateral?

Yes, likely this spring, and shale play after shale play goes belly up, same with tar sand plays and many international fields, and the banks that supplied the loans and/or were long oil get margin called.  Then a bond collapse next summer as the whole junk bond market goes under.  And finally a currency crisis as investing doesn't run to fiat but gold.

Tue, 01/13/2015 - 23:05 | 5658449 daveO
daveO's picture

IMO, you missed a step. Not a total bond collapse, but US bonds being bid to sub-zero rates while junk goes under, then a gold bid(perhaps simultaneously).

Tue, 01/13/2015 - 21:52 | 5658184 writingsonthewall
writingsonthewall's picture

...and now oil - check out the orders

 

Tue, 01/13/2015 - 21:53 | 5658185 stant
stant's picture

Copper just catching up with oil. Wontt be no after April tax return go out spend party. Corp Gota have there's in by march15. Ouch

Tue, 01/13/2015 - 21:54 | 5658191 NoDebt
NoDebt's picture

I'm gonna build a Tesla Coil.  A BIG FREAKING TESLA COIL.

Tue, 01/13/2015 - 21:57 | 5658203 kaiserhoff
kaiserhoff's picture

Keep us posted on your progress,

  and wear rubber boots;)

Tue, 01/13/2015 - 21:54 | 5658194 thatthingcanfly
thatthingcanfly's picture

False flag copper smash by the Russians who shot down MH17 over the Indian Ocean with a stealth missile launched from that submarine that the Norwegians couldn't find. Don't believe me, you must believe the Jew media. Go ahead, keep deluding youuselves. I'm sure you just think the copper price just crashed itself. Well, where's the black box then, huh?

The truth is out there.

Tue, 01/13/2015 - 21:57 | 5658207 Grouchy Marx
Grouchy Marx's picture

I suspected as much! Thanks for the confirmation! 

Tue, 01/13/2015 - 21:55 | 5658199 Just Take It All
Just Take It All's picture

Unambiguously Bullish!  Think of all the savings consumers will have on copper tubing.

And the US Mint can start making real pennies again instead of that crap that rots away after a few years outdoors.

Tue, 01/13/2015 - 21:58 | 5658212 ThisIsBob
ThisIsBob's picture

"If copper ain't happy, ain't nobody happy."

Tue, 01/13/2015 - 22:19 | 5658286 kaiserhoff
kaiserhoff's picture

and a blog full of bears and everybody bitchin'.

Anyone around here read ZH? ;)

Tue, 01/13/2015 - 22:02 | 5658222 Just Take It All
Just Take It All's picture

now $2.43.  i've seen stones fall slower than this.

Tue, 01/13/2015 - 22:01 | 5658228 Father Lucifer
Father Lucifer's picture

it's like the energizer bunny.going and going down

Tue, 01/13/2015 - 22:06 | 5658243 Seasmoke
Seasmoke's picture

Tick Tock. Tick Tock. Seems to sum it up best. 

Tue, 01/13/2015 - 22:09 | 5658261 Kaiser Sousa
Tue, 01/13/2015 - 22:04 | 5658244 old dude
old dude's picture

Have you seen this s***

Copper Is The New Gold Standard For Saving Lives

One effective strategy for combating these deadly infections is replacing some of the physical surfaces in clinical settings with antimicrobial copper.  The Environmental Protection Agency (EPA) granted a public health registration to certain copper alloys for its ability to kill specific bacteria, including MRSA and e-coli.  Unlike silver or any other touch-surface metal, copper is recognized by the EPA as being able to continuously kill greater than 99.9% of bacteria that cause hospital-acquired infections (within 2 hours).

http://www.forbes.com/sites/robertszczerba/2014/04/10/copper-is-the-new-...

Tue, 01/13/2015 - 22:28 | 5658321 Latitude25
Latitude25's picture

Yeah I use a copper based bottom paint on my world cruising sailboat.  It's great stuff.  Keeps nearly everything from growing on it.

http://coppercoatusa.com/

Wed, 01/14/2015 - 00:15 | 5658635 Disc Jockey
Disc Jockey's picture

Copper bottomed boats were the elite warships of their era. 

From the mid 1760s through the mid 1850s it gave the British both the advantage of speed by preventing growth of sea life on hulls, by allowing their ships to stay at sea for must longer, and finally extending the lifespan of all vessels.

http://en.wikipedia.org/wiki/Copper_sheathing

Copper bitchez. Get it while it's hot.

Tue, 01/13/2015 - 22:06 | 5658253 FieldingMellish
FieldingMellish's picture

... and there go the PMs...

Tue, 01/13/2015 - 22:18 | 5658280 Soul Glow
Soul Glow's picture

Gold almost hit $1250 today and silver was above $17.  Not bad.

Tue, 01/13/2015 - 23:16 | 5658482 daveO
daveO's picture

Right. It's, ultimately, a flight to safety. Copper is nearly all industrial. Silver is 60% industrial, so it could fall considerably more before the safety factors in. Gold is only 10% industrial. It will fall the least. 

Tue, 01/13/2015 - 22:11 | 5658270 stant
stant's picture

Hump daaaaaay!

Tue, 01/13/2015 - 22:14 | 5658273 Soul Glow
Soul Glow's picture

No deflation there....

Tue, 01/13/2015 - 22:15 | 5658275 spinone
spinone's picture

Boy, that escalated quickly.

https://www.youtube.com/watch?v=FONN-0uoTHI

 

Tue, 01/13/2015 - 22:21 | 5658299 Just Take It All
Just Take It All's picture

AUD/JPY no likey likey. -100pips in past hour.

Tue, 01/13/2015 - 22:24 | 5658311 me or you
me or you's picture

Anderson Copper 360?

Tue, 01/13/2015 - 23:35 | 5658527 HardlyZero
HardlyZero's picture

Watch next how Dr. Copper fell down and dragged the housing market down with him, while fiddling as Rome burns and the Levee Breaks.

http://videosift.com/video/Hurricane-Katrina-When-The-Levee-Breaks-Led-Z...

 

Tue, 01/13/2015 - 22:30 | 5658328 Just Take It All
Just Take It All's picture

of course equities don't give a sh*t.  who needs a real economy when you have a printing press?

Tue, 01/13/2015 - 22:35 | 5658346 Bossman1967
Bossman1967's picture

As long as our president is protecting islam all will be great and sell all your presious metals now before its too late. If you need just mail them to me

Sarc

Tue, 01/13/2015 - 22:38 | 5658353 MEFOBILLS
MEFOBILLS's picture

The Chinese have been buying copper because they believe cars will be battery powered in future.  Thick wires are needed to carry heavy current.  Also, a commodity like copper can become part of the basket for SDR's.

Eventually the dollar will no longer be reserve currency, and some sort of SDR like basket currency may be pushed as an "international currency."

The ancient Gold Hoards, or old money powers, also want their Gold put into the basket.  Of course Gold has little industrial value compared to other metals.  

Dollar as reserve currency won't last.  

Tue, 01/13/2015 - 23:36 | 5658532 tip e. canoe
tip e. canoe's picture

will hemp also be included in the basket then?

http://www.energyharvestingjournal.com/articles/6809/could-hemp-nanoshee...

scientists are reporting that fibers from the plant can pack as much energy and power as graphene, long-touted as the model material for supercapacitors

that would be a hoot wouldn't it?

Tue, 01/13/2015 - 22:59 | 5658436 Billy Shears
Billy Shears's picture

Last call for Central Bankers and Politicos...

Tue, 01/13/2015 - 23:16 | 5658486 Bill of Rights
Bill of Rights's picture

And its gone.

Wed, 01/14/2015 - 01:10 | 5658768 Hulk
Hulk's picture

My Moonshine still project is very happy to hear this news, but my liver do object...

Wed, 01/14/2015 - 03:16 | 5658965 I Write Code
I Write Code's picture

For once maybe ZH isn't exaggerating.

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