The Price of Copper Falls Below $9000 per Ton
Recent data shows that the price of copper has fallen below $9000 per ton for the first time since April, due to increasing pessimism about global demand, especially in China. This significant drop in price has been driven by concerns about the future of the global economy and its impact on the demand for industrial metals.
Industrial metals have decreased in value by about one-fifth compared to their record high in mid-May. The LMEX Metals index, which tracks the prices of six major metals, has also seen a significant decline in recent weeks. This has raised concerns among investors and analysts about the long-term outlook for the global metal market.
London Metal Exchange hits record low
The optimism regarding the growth trajectory in the Celestial Empire has deepened, after the Third Plenum – a key meeting of Communist Party representatives – last week failed to provide the stimulus needed to support metal demand. The price of copper even dropped after the Chinese central bank reduced the one-year loan interest rate on Thursday, just a few days after cutting another interest rate, in
Impact of Global Growth on Copper Prices
Concerns about global growth continue to weigh on copper prices, which have fallen below $9,000 per ton. Analyst Gong Ming from Jinrui Futures commented that the price of copper could experience a significant decline due to these concerns. However, the price may stabilize around $8,900 as supply-related risks emerge, Ming added, pointing to the possibility of production cuts in China.
At 11:00 local time in Shanghai, copper prices fell by 1.6% to $8,963 per ton. Zinc prices also declined by 1.7%, while aluminum prices dropped by 0.7%.
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