Iron ore price slumps to three-week low on weak China demand, strong global supply
Property investment in China fell 10.1% in the first half of 2024 from a year earlier.
Copper dropped sharply on Friday, reaching a six-month low, after China’s decision to cut interest rates suddenly revived fears of a slowdown in the second largest economy.
At the close of the session, copper had fallen 3.06% on the London Metal Exchange (LME). Changing hands at $3.29 per pound, the metal is down 1.5% for the week.
China surprised investors on Thursday after the country announced its first interest-rate cut since 2008.
Over the weekend China will release its industrial production for May as well as its trade data. The data is expected to show a decline in the import of the red metal, as unfavourable prices and high stockpiles grind down demand.
China consumes nearly 40% of refined copper production. According to Reuters, as much as 80% of imports are not used immediately by industry but by investors as collateral to secure cheaper loans.
May was the third month of declines for the commodity, which is a bellwether for the metals industry and often regarded as a leading indicator for economic growth given its widespread use in construction, communication and transport.
