Copper prices slipped on Monday to hover near a 17-month low as renewed lockdowns in top consumer China and the prospect of aggressive rate hikes stoked fears of global economic slowdown, denting demand for metals.
Three-month copper on the London Metal Exchange was down 0.3 percent at $8,027.50 a ton.
Copper, used in power and construction sectors and is considered a gauge of economic health, fell to its lowest since early-February 2021 at $7,955 on Friday.
The most-traded August copper contract in Shanghai fell 2.1 percent to 61,250 yuan ($9,153.68) a ton by the midday break.
“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.”
From the United States to the euro zone, activity at factories slowed to levels last seen during the initial wave of the pandemic.
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.
