Copper's longest decline in 14 years

Copper fell for a fifth straight month of losses amid hawkish messages from central banks and growing concerns about a global recession, marking its longest decline since 2008. Copper fell for a fifth straight month of losses amid growing fears of a global recession, marking its longest decline since the 2008 financial crisis. The metal has retreated by about a third since a record high set in March following Russia’s invasion of Ukraine. Concerns about demand being hurt by the energy crisis in Europe, continued tight monetary policy from the Fed and China’s Zero Covid strategy continue to mount. Markets were hit by a wave of risk-off on Thursday as hawkish messages from central banks strengthened the dollar. Cleveland Fed President Loretta Mester reiterated that the U.S. policy rate should rise above 4% by early next year, while saying she did not foresee a rate cut in 2023. Concerns about demand for copper outweigh ongoing supply-side pressures. Chile, which mines more than a quarter of the world’s copper, reported an 8.6 percent drop in output in July from a year earlier. In China, the economy remains volatile as Shanghai’s two-month lockdown earlier this year due to a recurrence of the COVID-19 pandemic has left businesses struggling with a slow recovery and stagnant demand. Everbright Futures Co. said in a note on Thursday that the copper market is pricing in rising expectations for more Fed rate hikes. It said a surge in COVID-19 cases in China has dampened market confidence.