Copper price down amid demand outlook worries

The copper price fell on Wednesday on signs the global growth outlook is worsening.

Investors are bracing for a slower but still robust economic recovery from the pandemic and gradual monetary-policy tightening, as inflation concerns take hold.

Copper for delivery in December fell 1.2% from Tuesday’s settlement price, touching $4.141 per pound ($9,110 per tonne).

Worries over the demand outlook have so far centered largely on China, where manufacturers are facing a power crunch, but signs of a slowdown are emerging in Europe too.

Germany’s factory orders slumped 7.7% in August, in the third-biggest drop in the past 30 years, official data showed.

Surging gas prices also continue to heap pressure on industrial firms throughout Europe.

“Europe has been the surprise out-performer for most of the year, but with energy prices rising we are seeing growing pressure on industrial consumers,” Colin Hamilton, managing director for commodities research at BMO Capital Markets, told Bloomberg.

“Europe is also obviously at the sharp end of the global logistical bottlenecks as well.”

Click here for an interactive chart of copper prices

(With files from Bloomberg)