Copper Prices Hit A 7-Week Low

Copper prices hit a 7-week low. Copper slumped as Chinese demand waned and US monetary policy tightened.

Copper prices, which reached record levels last month with incentives, low interest rates and the economic recovery around the world, started to decline. The expectation that the US Federal Reserve (FED) will begin to withdraw its support with the rise in inflation and the decrease in demand from China played a major role in the decline in prices. Investors will wait for signals this week when the Fed will end its emergency asset purchase program. Fed officials are expected to forecast a rate hike in 2023 this week. In this case, it is said that it may cause a decrease in commodity demand. Spot copper fell 2.9 percent in London and traded at $9,680 a tonne. This is the lowest level seen since April 26. Nickel was down 3 percent to $17,930, while zinc was down 1.9 percent. Iron futures in Singapore fell 1.3 percent to $209.25 a tonne.