Copper Price Slumps on China Property Slowdown: Can $6 Support Rally

The copper market is facing headwinds due to China's property slump and weak credit growth. The decline in demand from construction, appliances, and vehicles has weighed on the price of copper (XCU), which dropped from its record level.

However, there are still factors supporting a bullish outlook for copper. Tight supply conditions and increasing demand from AI infrastructure, such as data centers and power grids, continue to drive prices higher.

The key support area that will determine whether copper resumes its rally is the $6 threshold. If copper fails to hold this level, it could indicate a more significant downturn in the market.