Copper prices experienced a downturn on Thursday, reflecting growing anxieties about future demand. The slide is largely attributed to a less optimistic outlook for global economic expansion, which directly impacts the demand for industrial metals like copper.

Factors Influencing the Price Decline

Several factors are contributing to the weaker demand outlook:

• Trade Policy Uncertainty: Ongoing trade disputes and the potential for increased tariffs are creating uncertainty in the global market, impacting investment decisions and industrial activity.
• Slower Growth in Key Regions: Economic growth in some major copper-consuming regions, such as China, is showing signs of deceleration, further dampening demand expectations.
• Inventory Levels: Increased copper inventories in warehouses are also contributing to the downward pressure on prices, suggesting ample supply relative to current demand.

Analyst Commentary

Market analysts are closely watching economic indicators and geopolitical developments to gauge the future direction of copper prices. The overall sentiment remains cautious, with many expecting continued volatility in the near term.

Potential Rebound Factors

Despite the current downward trend, some factors could potentially support a rebound in copper prices:

• Infrastructure Spending: Increased infrastructure investment in developing economies could boost copper demand.
• Supply Disruptions: Unexpected disruptions to copper mining operations could tighten supply and support prices.

However, the prevailing view is that the demand-side concerns will continue to weigh on copper prices in the short to medium term.