Copper price falls due to expected slowdown in demand

Copper was lower on Tuesday as the market focused on slowing growth and demand around the world, although low stock levels in London Metal Exchange (LME) listed warehouses provided some support for investors. prices.

At 0938 GMT, benchmark LME copper was down 1.4% at $7,451 a tonne. Prices for the metal used by investors as an indicator of economic health have fallen 30% since hitting an all-time high of $10,845 in March.

Citi analysts expect copper to fall to $6,200 a tonne in the next three months, they said in a note.

“High (copper) mining supply growth to multi-year highs in 2023 should also eventually turn into a headwind”, they added.

Copper stocks in LME-registered warehouses have fallen 8% to 134,400 tonnes since October 13. Canceled purchase orders – metal destined for delivery – which represent 57% of the total, suggest another 76,400 tonnes will exit the system.

Concerns about tight supplies on the LME market have created a hefty premium for spot copper over the three-month contract. In its last price, it was trading at US$135 a ton, its highest since last November.

In other base metals, aluminum was down 0.7% at $2,167 a ton; zinc fell 1.6% to US$2,910; lead gained 0.4% to $1,896; tin was down 0.4% at US$18,380; and nickel fell 1% to US$22,030.

With information from Reuters