Copper prices hit three-week low on doubts over China’s pro-growth push

Copper prices hit a three-week low on Tuesday, fuelled by doubts over how the recent pro-growth push in China will impact its demand.

The metal fell by more than 1% on the London Metal Exchange as sentiment across China’s financial markets turned sour again.

Copper for December delivery declined 1.54% from Monday’s settlement, reaching $4.33/lb. ($9,526/t) in early morning trade on the Comex in New York.

[Click here for an interactive chart of copper prices]

Authorities in China have sharply ramped up policy stimulus since late September to revive the economy and ensure growth will reach the government’s target of around 5% this year.

However, a Reuters poll showed that China’s economy is likely to expand 4.8% in 2024, undershooting the government’s target. Growth could cool further to 4.5% in 2025, maintaining pressure on policymakers as they consider more stimulus measures.

“The main pressure is from the consumption side, which is linked to deflationary pressures,” said Xing Zhaopeng, ANZ’s senior China strategist.

Last week, China’s finance minister pledged to “significantly increase” debt to revive growth, leaving investors guessing about the overall size of the stimulus package.

The government will release third-quarter GDP data and September retail sales, industrial production and investment data on Oct. 18.

(With files from Reuters and Bloomberg)