
Copper’s Price Falls to Eight-Week Low as Demand Weakens in China
Copper prices have recently dropped to their lowest point in two months due to weakening demand for the metal, particularly in China, which is its largest market. Data indicating soft economic performance in China has put additional downward pressure on copper prices, leading to a decline of 0.9%, bringing the price to $9,655 per ton on the London Metal Exchange.
This is the lowest price seen in eight weeks, following a significant price surge that saw copper reach an all-time high earlier this year. The recent downturn is attributed to a slowdown in industrial output in China, linked to worsening conditions in the housing and construction sectors amid a broader economic slowdown.
In response to these challenges, the Chinese government, led by President Xi Jinping, has initiated measures aimed at stabilizing the economy and improving conditions in the property sector. However, recent industrial data has sparked renewed calls for more substantial government stimulus, as decreases in real estate investment and home prices have continued to escalate.
Earlier this year, copper prices had peaked at over $11,000 per ton but have since declined due to rising global inventory levels and ongoing concerns regarding China’s economic slowdown. Additionally, metal prices globally faced pressure last week following the U.S. Federal Reserve’s revised expectations regarding interest rate cuts for the remainder of the year.
In related market movements, the price of iron ore has decreased by 2.3% over the past week, and aluminum prices have fallen to their lowest levels since mid-April.