The copper price fell on Tuesday due to a stronger dollar and deteriorating demand prospects over weak growth in China.
Copper for delivery in March fell 0.1% on the Comex market in New York, touching $3.80 per pound or $8,360 per tonne.
[Click here for an interactive chart of copper prices]
China’s manufacturing sector activity contracted at a sharper pace in December as surging covid infections disrupted production and weighed on demand, a survey of purchasing managers (PMIs) showed.
A recovery in subway use in major Chinese cities sends “a powerful signal that China is waking from its covid-induced slumber” said Giles Coghlan, an analyst at broker HYCM.
“However, that has not been felt in copper markets because of worries that both the US and Europe are heading towards recessions while China’s latest PMI prints show further falls,” he added.
Sliding demand for imported copper in China can be seen in the Yangshan copper premium, which had slumped to $37.50 a tonne on Dec. 30, down more than 70% since the middle of October.
(With files from Reuters)