Copper price below $8,000 as slowdown fears mount

Copper for delivery in September fell 1% from Friday’s settlement, touching $3.56 per pound ($7,847 per tonne) Monday morning on the Comex market in New York, the lowest since February 2021.

The most-traded August copper contract in Shanghai ended daytime trading down 3.1% to 60 660 yuan a tonne.

“Softening demand and concerns over a growth slowdown are dragging on the sector. We think improving Chinese economic activity will stabilize prices,” ANZ analysts said in a note.

“Inventories for metals are shrinking to multi-year lows. Supply challenges due to higher energy prices and other operational issues will allow little room for inventories build.”

Adding to demand worries, cities in eastern China tightened covid-19 curbs on Sunday as coronavirus clusters emerge, posing a new threat to the country’s economic recovery under the government’s strict zero-covid policy.