Copper prices have sunk to their lowest level in six years, primarily driven by fears of reduced demand from China. The Asian nation is the world’s biggest consumer of copper, and any slowdown in its economy has a significant impact on the metal’s price.

The price of copper on the London Metal Exchange fell to $5,063.50 a tonne, its lowest since July 2009. This represents a substantial drop from its peak in 2011, when it traded above $10,000 a tonne.

Several factors contribute to the concerns about Chinese demand:

• Slowing economic growth: China’s GDP growth has been decelerating, raising concerns about future demand for raw materials.
• Weakening manufacturing sector: A contraction in China’s manufacturing activity further dampens the outlook for copper consumption.
• Increased copper stockpiles: Rising inventories of copper in Chinese warehouses suggest that demand is not keeping pace with supply.

Analysts are closely watching Chinese economic data for any signs of improvement. However, the current outlook suggests that copper prices may remain under pressure in the near term.

The decline in copper prices is also affecting mining companies, with some considering production cuts to mitigate the impact of lower revenues.