Copper price lowest since November 2020 on economic slowdown worries www.mining.com
Copper prices extended a decline on Tuesday as aggressive interest rates, a spike in covid-19 cases in China, potential recession, and rising inventories weighed on investor sentiment.
Copper for delivery in September fell 4.8% from Monday’s settlement, touching $3.43 per pound ($7,546 per tonne) Tuesday morning on the Comex market in New York, the lowest since November 2020.
The most-traded August copper contract in Shanghai ended daytime trading down 1.9% to 60,110 yuan ($8,975.66) a tonne by midday trade.
“There was a bull trap set early at the open today as S&P and Nasdaq futures pointed higher. However, the rest of the bearish sentiment is just because of recession fear, which is almost certain for most US and Europe already,” a Singapore-based metals trader said.
Pulling down economic activity and inducing recession fears are soaring inflation and interest rate increases in many countries, including the United States, where the Federal Reserve is expected to deliver another 75-basis-point increase this month.
Meanwhile, copper stocks in LME-approved warehouses jumped 10,100 tonnes to 136,950 tonnes. They have risen more than 20% over the past week.
Cities in eastern China tightened covid curbs on Sunday as coronavirus clusters emerged.
(With files from Reuters)
Published Date:2022-07-06