Base Metals Slide as Demand from China Weakens

Base metals prices slid Wednesday as demand from China, the world’s largest consumer of metals, weakened amid concerns about the global economy.

Copper, aluminum and zinc all fell sharply on the London Metal Exchange.

“The market is still very much driven by macro concerns,” said David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney.

“The data out of China over the weekend wasn’t particularly encouraging and that’s weighed on sentiment,” he added.

Copper for three-month delivery fell $275 to $4,125 a ton. Aluminum fell $46 to $1,550 a ton. Zinc fell $94 to $1,181 a ton.

Analysts said that the slide in prices was also due to the stronger dollar, which makes metals more expensive for buyers holding other currencies.

“The stronger dollar is definitely playing a role,” said Moore. “It’s adding to the pressure on prices.”

The slide in base metals prices is the latest sign of the slowdown in the global economy. Demand for metals is typically a good indicator of economic activity, as they are used in a wide range of industries, including construction, manufacturing and transportation.

The outlook for base metals prices remains uncertain, as the global economy continues to struggle. However, some analysts believe that prices could rebound in the long term, as demand from China and other emerging markets is expected to increase.

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