Copper price falls on demand worries in China
The copper price fell on Monday as worries about demand in China surfaced due to weak economic data and a firmer dollar.
Copper for delivery in September fell 2% on the Comex market in New York, touching $3.59 per pound ($7,898 per tonne).
“Chinese data was disappointing, suggesting a bigger hit than expected from covid-19 restrictions,” a metals trader said, adding that a higher dollar had also triggered fund selling.
“But there is a positive – interest rate cuts from the PBOC (People’s Bank of China).”
China’s economy unexpectedly slowed in July, with growth in industrial output, fixed-asset investment, total social financing, and new yuan loans slowing.
Meanwhile, Chinese property developers sharply cut investment in July, while new construction starts suffered their biggest fall in nearly a decade.
However, China’s central bank unexpectedly cut key interest rates for the second time this year on Monday in an attempt to revive credit demand to support growth.
