Copper prices fell on Monday, as new COVID-19 restrictions in top consumer China and fears of rapid interest rate hikes leading to a global economic slowdown dent demand for metals.
Three-month copper on the London Metal Exchange dropped 2.5 percent to $7,614.50 a ton.
Copper, used in power and construction and often seen as a gauge for the global economic health, hit its lowest level since November 2020 last week.
The most-traded August copper contract on the Shanghai Futures Exchange was down 2.8 percent at 58,020 yuan ($8,652.99) a ton.
“The declines can be attributed to fears of new restrictions in Shanghai and Macau that could dampen growth. We are caught in the negative feedback look of Fed rate hikes and COVID risks in China,” said Stephen Innes, managing partner at SPI Asset Management.
