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Hansen: Can you extract a solid return from copper's meltdown?

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The price of copper hit a six-year low this week. Saxo's Ole Hansen discusses why China, the world's largest consumer of copper, is partly to blame. As demand falls, it's estimated that copper shipments to China will shrink a further 10% in 2016. 

But Hansen explains that the strong dollar is also impacting commodities like copper. That's likely to increase if the US Federal Reserve hikes rates in December and if the European Central Bank extends its quantitative easing programme.

Although there are signs that copper supply is being reduced by the likes of Glencore, Ole says more needs to be done if the industrial metal is to recover any time soon. But he also acknowledges that the current low price will begin to attract investment interest.