LONDON: Copper prices fell on Thursday as weak Chinese factory data and a US Federal Reserve warning of further increases to interest rates fanned fears of weak demand.
Global stock markets also fell and the dollar strengthened, pressuring dollar-priced metals by making them costlier for buyers holding other currencies.
Benchmark copper on the London Metal Exchange (LME) was down 2.5% at $8,300.50 a tonne at 1701 GMT. Weakening economic growth and rising interest rates dragged prices of the metal used in power and construction from a record high of $10,845 a tonne in March to as low as $6,955 in July.
Prices have since recovered somewhat as investors look ahead to economic recovery and the end of interest rate hikes, but demand remains weak.
Data showed that in China, the world’s biggest metals consumer, the economy lost more momentum in November as factory output slowed and retail sales extended declines, both missing forecasts.
Some analysts also expect the easing of coronavirus restrictions to cause a huge and potentially disruptive increase in COVID-19 infections.
Source: Brecorder
