{"id":1163379,"date":"2020-02-03T14:26:56","date_gmt":"2020-02-03T20:26:56","guid":{"rendered":"https:\/\/www.mining.com\/?p=1012774"},"modified":"2020-02-03T14:26:56","modified_gmt":"2020-02-03T20:26:56","slug":"copper-price-and-coronavirus-black-swan-like-no-other","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1163379","title":{"rendered":"Copper price and coronavirus: \u201cBlack swan like no other\u201d"},"content":{"rendered":"<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/02\/moody-copper-price-coronavirus-pandemic-black-swan-1-1.jpg\" alt=\"\" class=\"wp-image-1012779\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/02\/moody-copper-price-coronavirus-pandemic-black-swan-1-1.jpg 746w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/02\/moody-copper-price-coronavirus-pandemic-black-swan-1-1-300x212.jpg 300w\" sizes=\"(max-width: 746px) 100vw, 746px\" \/><\/figure>\n<p>The copper price declined again on Monday as markets in China, responsible for more than 50% of the world\u2019s copper consumption, reopen to deep losses after an extended halt to trading due to the coronavirus outbreak. <\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>Thirteen consecutive down days in New York saw copper for delivery in March pushed down  14% in value, last trading at $2.4875 a pound ($5,485 a tonne) on the Comex market in New York.\u00a0 <\/p>\n<p>Volumes were massive with the equivalent of 3.1 billion pounds of copper (1.4m tonnes) traded by mid-afternoon on Monday. If the metal closes below $2.50 it would be the lowest level since mid-May 2017.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Unlike the financial crisis, public-health and economic  policymakers may be limited regarding their ability to remedy or offset a 1918 (or Spanish flu) type pandemic.<\/p>\n<\/blockquote>\n<\/figure>\n<p>In a research note Moody&#8217;s Capital Markets Research chief economist John Lonski said that a coronavirus pandemic (and the declaration of the outbreak as such seems imminent) would be a &#8220;black swan like no other&#8221;. <\/p>\n<blockquote class=\"wp-block-quote\">\n<p>A coronavirus pandemic would be even more of a \u201cblack swan\u201d than the global financial crisis and Great Recession of 2008-2009.<\/p>\n<\/blockquote>\n<blockquote class=\"wp-block-quote\">\n<p>Unlike the U.S. home mortgage meltdown, no one predicted the early 2020 arrival of a potentially devastating pandemic. <\/p>\n<\/blockquote>\n<blockquote class=\"wp-block-quote\">\n<p>And unlike the financial crisis, public-health and economic  policymakers may be limited regarding their ability to remedy or offset a 1918 (or Spanish flu) type pandemic.<\/p>\n<\/blockquote>\n<p>Moody&#8217;s says due to the outsize role of China in global industrial activity and the sluggishness evident in the base metals complex even before the outbreak, the impact of a full blown pandemic would be considerable. <\/p>\n<blockquote class=\"wp-block-quote\">\n<p>The industrial metals price index [before the outbreak] was not even close to mimicking its recovery following the global slowdown and profits recession of 2015-2016.<\/p>\n<\/blockquote>\n<blockquote class=\"wp-block-quote\">\n<p>Simply getting the monthly averages down to their respective lows of 2015-2016\u2019s profits recession would drop the base metals price index by 26% and sink the price of WTI crude oil by 43% from their recent readings.<\/p>\n<\/blockquote>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/02\/moody-copper-price-coronavirus-pandemic-black-swan-.jpg\" alt=\"\" class=\"wp-image-1012776\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/02\/moody-copper-price-coronavirus-pandemic-black-swan-.jpg 650w, https:\/\/www.mining.com\/wp-content\/uploads\/2020\/02\/moody-copper-price-coronavirus-pandemic-black-swan--300x188.jpg 300w\" sizes=\"(max-width: 650px) 100vw, 650px\" \/><figcaption>Source: Moody&#8217;s Analytics. January 30, 2020<\/figcaption><\/figure>\n<p>Copper prices bottomed at $1.94 a pound in January 2016 and averaged $2.21 for the year, the lowest annual average price since 2005. Zinc price fell to a low of $1,453 a tonne that same month while nickel lowest point came in February of 2016 at $7,725 a tonne. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Copper price touches lowest since May 2017 on Monday &ndash; new report says pandemic could drop industrial metals prices another 26%.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1163379"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1163379"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1163379\/revisions"}],"predecessor-version":[{"id":1163405,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1163379\/revisions\/1163405"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1163379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1163379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1163379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}