Copper prices retreated on Wednesday on weak physical demand in China. Prices have shed 10% since the peak in January as recession threatens the global economy.
Copper for delivery in July on the Comex market in New York touched $3.84 per pound ($8,448 per tonne), down 0.4% compared to Tuesday’s closing.
[Click here for an interactive chart of copper prices]
“Copper will likely remain rangebound for now as the battle between recession and China demand, and falling stocks continue,” said Ole Hansen, analyst at Saxo Bank.
“Investor involvement remains weak as macro economic-focused funds remain sidelined,” he said.
A Reuters poll showed that prices are due to recover slightly in coming months, supported by low inventories, but the upside will be curbed by weak physical demand in China.
Disruptions may hit mine output, leading analysts to trim a forecast surplus for this year to 133,000 tonnes from 165,000 tonnes of oversupply in the previous poll.
According to World Bank’s latest Commodity Markets Outlook report, copper prices are forecast to fall 4% in 2023 compared with 2022, and by a further 6% in 2024 as supply conditions improve.
(With files from Reuters)
