Copper prices at 6-month low

Copper prices fell below $8,000 per tonne for the first time in six months following weak economic data from China following the end of COVID-19 restrictions. Copper prices fell as much as 2 percent on the London Metal Exchange to $7,944 per tonne, the lowest since late November. The metal has lost about 7 percent this month amid weak economic data from China, the world’s largest metal consumer. Unlike previous slowdowns, Beijing is deciding to end metal deals without spending heavily on infrastructure. Although Trafigura Group and Goldman Sachs Group Inc. have called for copper to reach an all-time high within a year, speculators have predicted a decline, citing a rapid turnaround in sentiment since the first quarter. Citigroup Inc. said in a note on the metals market, “Metal markets faced significant pressure following disappointing April macro data from China.” Although analysts believe that the copper problem stems from China, it does not seem that there is a move from the US to revive the markets. On the other hand, the aggressive monetary tightening policy of the US Federal Reserve (Fed) is also thought to have reduced demand.