Copper Prices Plummet Amid Weak Demand and Rising Oil Costs
Copper prices plummeted to their lowest in more than a week on Monday as concerns over weak demand from top consumer China weighed heavily on the market. The benchmark copper price on the London Metal Exchange fell by 1.2% to USD14,450 a metric ton, its lowest since September 17.
The decline was exacerbated by rising oil prices and a stronger US dollar, making dollar-priced metals more expensive for holders of other currencies. Brent crude oil surged over 2% after US President Donald Trump rejected a peace deal with Iran to resolve their conflict and reopen the Strait of Hormuz.
China's industrial profit growth slowed further in August, underscoring weak domestic demand. 'The key data point weighing on sentiment is China's August industrial enterprise profits,' said Britannia Global Markets. 'This signals that downstream manufacturing appetite remains constrained.'