Copper price extended its decline on Friday as investors fretted over the prospect of weak economic growth hitting metals demand after renewed covid-19 lockdowns in China and increases in interest rates.
Copper for delivery in July fell 1.9% from Thursday’s settlement, touching $4.299 per pound ($9,457 per tonne) Friday morning on the Comex market in New York.
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“Copper is coming under several sorts of pressure. The lockdowns aren’t ending as quickly as hoped and China’s zero-Covid policy is very damaging for economic growth,” said Nitesh Shah, commodity strategist at exchange-traded fund provider WisdomTree.
“You’ve also got central banks in other parts of the world maintaining a very hawkish tilt and that puts into question whether economic growth outside of China is going to decelerate faster.”
China’s Shanghai commercial hub will lock down millions of people for mass Covid-19 testing this weekend, only 10 days after lifting its grueling two-month lockdown.
The most-traded July copper contract in Shanghai ended daytime trading down 0.3% at 72 650 yuan ($10 870.22) a tonne.
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(With files from Reuters)