Copper sell-off deepens amid mounting concerns of a worldwide recession, dropping below US$7,000 for the first time since 2020
- Copper’s price fell below US$7,000 a ton for the first time since November 2020
- That capped the 35 per cent decline from the all-time high it touched just four months ago over Russia’s invasion of Ukraine
Copper, a darling of the global economic recovery from the pandemic, tumbled to its lowest level in 20 months as fears of a worldwide recession continued to mount, damping the outlook for demand of the metal used in everything from automobiles to homes to iPhones.
The red metal dropped below US$7,000 a ton for the first time since November 2020, capping a 35 per cent decline from the all-time high it touched just four months ago when investors worried Russia’s invasion of Ukraine would further complicate users’ ability to obtain copper.
The precipitous decline comes amid ongoing concerns that China, which accounts for half of the world’s consumption, won’t recover quickly from Covid-related shutdowns and as surging energy costs weigh on Europe’s economy and cascading US inflation threatens a recession in the world’s largest economy.
“Unfortunately, right now trying to locate a hard bottom in copper is proving to be a difficult task,” Phil Streible, chief market strategist for Blue Line Futures, said by phone. “China, rates, recession fears and supply chain issues are still there. The dominoes are falling.”
