Aftershocks from Dubai felt across Non-Ferrous Market
With the recent news of an economic crisis affecting Dubai and the Middle East, it was hoped by forecasters that the repercussions of such information coming to light would not spread across other financial markets.
These fears were particularly being felt by an already nervous metal market. The revelations of the Middle Eastern crisis led to another sharp sell off last week of several base metals, which had the potential to undo much of the recovery the market had managed over the past year.
As worries from Dubai took hold, sparking stock market losses in Asia and Europe, non-ferrous metal prices plunged during early trading on the LME.
One of the biggest non-ferrous metals that suffered a sudden drop in price was copper which saw its price per tonne drop by several hundred dollars.
This latest announcement was a big blow for the global metal industry as recovery in 2010 seemed on the horizon after several major producers such as China had recently announced an increase in non-ferrous metals output and prices were also appearing higher than last year.
