Copper prices experienced a decline on Thursday, primarily driven by concerns over weakening demand from China. China’s economic activity is a key driver of copper demand, and recent data has raised concerns about a slowdown.

The price of copper for delivery in three months on the London Metal Exchange (LME) fell to $7,950 a tonne. This represents a significant drop from recent highs, reflecting the market’s sensitivity to changes in Chinese demand.

Factors Contributing to the Decline

• Weak Chinese Demand: Slower growth in China’s manufacturing and construction sectors has reduced the country’s need for copper.
• Global Economic Uncertainty: Concerns about the overall health of the global economy are weighing on commodity prices, including copper.
• Inventory Levels: Rising copper inventories in warehouses are also contributing to the downward pressure on prices.

Analyst Commentary

Analysts are closely monitoring economic data from China and other major economies for signs of a potential recovery. However, the near-term outlook for copper prices remains uncertain, with many expecting continued volatility.

Impact on Mining Companies

The decline in copper prices could negatively impact the profitability of mining companies that produce the metal. Lower prices reduce revenue and can lead to reduced investment in new projects.