The impact of the new coronavirus grew after the number of deaths in China jumped to 80. As a result, the price of copper, and more generally of all industrial metals, fell to the lowest level of 8 weeks, causing much concern about the growth of the Chinese economy.
China reported that the total number of confirmed cases in the country rose by about 30% to 2,744, while it confirmed the number of deaths (80) compared to 56 reported over the weekend.
As a result, the government extended the lunar New Year’s holiday week by three days until February 2 in an attempt to slow the spread of the virus. In addition, the world’s largest consumer of raw materials, including industrial metals, has blocked Wuhan and surrounding areas to contain the coronavirus, the first large-scale quarantine of modern times.
On the technical front, copper opened Monday in strong gap down to $ 5832 per ton (-1.52%), breaking down all major intermediate support.
It must be taken into account that the decrease is due exclusively to the impact of the “coronavirus”, therefore an exogenous event coming from outside. Once emotional normality is restored, this should bring prices back to a level of equity ($6000).