Copper Prices Plunge to Month Low on Oil and Bond Yield Concerns
Copper prices have been under pressure lately, and on Wednesday they hit their lowest level in a month at $6.4 per pound.
The decline is largely due to rising oil prices and global bond yields, which are fueling inflationary risks and interest rate concerns.
Oil prices have advanced for three consecutive sessions amid escalating tensions between the US and Iran, making it more difficult to reopen the Strait of Hormuz and potentially disrupting global trade.
The increasing cost of borrowing could eventually slow down global economic growth, which would dampen demand for industrial metals like copper.
However, tight global copper supply is offering some support. Top producer Chile reported a 9.4% decline in output in July, and traders are redirecting copper shipments to the US ahead of potential new import tariffs.