Copper Prices Plummet on Weaker Chinese Data

Copper prices dropped to their lowest in six months as China's economic data raised concerns about demand for the metal. The London Metal Exchange three-month copper price dipped to $14,102 a metric ton after China reported slower factory output growth and a bigger-than-expected drop in fixed-asset investment.

These sectors are major users of copper, and softer spending can quickly impact expectations for consumption. The Yangshan copper premium, which reflects the extra cost Chinese buyers pay to import copper into bonded warehouses near Shanghai, also fell to $85 a ton, its lowest since July 10th.

This decline in the premium makes importing less attractive for China, leading to lower demand on the global market. Higher oil prices after the US-Iran truce expired may also add to inflation concerns and weigh on growth-sensitive commodities like copper.