Copper's Winning Streak Fades Amid Demand Concerns
Copper prices have been on a roll for weeks, but their winning streak is finally starting to fade. The metal slipped at the end of the week, threatening its longest run of weekly gains since 2020.
The drop was not caused by concerns over interest rates, as US inflation data has been relatively tame and futures markets only see a 41% chance of a Federal Reserve hike in September, down from 44% last week.
Instead, traders are questioning whether demand for industrial metals can justify prices that have already risen significantly. Fastmarkets analyst Andy Farida warned that demand may look resilient but could lose momentum if wage growth stays subdued.
The doubts about copper's price also affected other metals, with aluminum falling almost 1% and heading for a weekly drop as talk of recovering supply cooled the mood.
One concern is that China, which has been paying a premium for copper, may be scaling back its demand. If this trend continues, it could put downward pressure on prices globally.