Copper, aluminum, nickel and lead are almost to their lowest level in months amidst Cyrpus’ economy absolutely tanking over the past few days. Copper has hit a four month low as the euro hit its lowest level all year.
The Cypriot Government, which is in desperate need of a bailout, has been threatening to tap into citizens bank accounts to help raise the $13 billion needed for a bailout. People have been fleeing to the banks to pull their money so the government can’t tap into it.
So how does that affect the commodities markets? Simple. People and companies won’t be building much because they won’t have any money.
Copper fell 2.2 percent to $7,591.50 a metric ton on the London Metal Exchange, a report from the Business-Standard said. Aluminum fell to $1,983 and nickel fell to $16,550 a ton. Lead also dropped 1.8 percent a ton amidst from the news out of Cyprus and Europe.
How does this affect the price of steel, it might bring it down a bit as the demand in Europe won’t be has high until Europe figures itself out. Fortunately in America, things appear getting closer to where before the 2008 collapse.