Copper prices on the international market continued to decline last week, marking a week of adjustment in the face of signs of weakness from China - the world's largest copper consumer.
The main reason leading to price decline
China is currently facing economic difficulties, including a slow recovery in real estate and industrial production - the two largest copper consuming sectors. This causes domestic demand for copper to plummet, putting pressure on prices.
Opening price of the week: 4,122 USD/pound
Weekly closing price: 4,073 USD/pound
Change: -0.049 USD (-1.18%)
In addition, copper supply from major producing countries such as Chile and Peru remains stable, increasing the imbalance between supply and demand.
In addition, investor sentiment is also affected by volatility in global financial markets, causing investors to reduce trading in base metals such as copper.
Short-term outlook
Although copper prices are in a correction phase, many experts predict that prices could recover if China implements more economic stimulus measures, especially in the infrastructure and manufacturing sectors.
The weakness of the Chinese market is putting great pressure on copper prices
However, if negative signs from this market persist, the price decline may continue in the near future. This is not only a challenge for the copper market, but also a signal of a slowdown in global base metal demand. Investors need to closely monitor moves from China and changes in supply and demand in the international market to have appropriate strategies.
