Copper futures face downturn amid global economic pressures

Copper futures recently faced a downturn influenced by various factors, primarily a stronger dollar and a subdued demand forecast in China, the largest consumer of the metal globally. The three-month copper price on the London Metal Exchange slipped by 0.2% to $9,555.5 per metric ton. This drop was impacted by the dollar's strength, nearing the 160-yen threshold, making dollar-denominated metals pricier for holders of other currencies. In China, the most-traded July copper contract on the Shanghai Futures Exchange also saw a decline, falling by 1.1% to 77,930 yuan ($10,725.15) per ton.

The recent downward pressure on copper prices can be linked to weak economic signals, as noted by ANZ Research. The global manufacturing outlook appears dim following disappointing flash PMI readings in Europe and the US. Moreover, the accumulation of inventories for metals like aluminium, copper, and nickel has contributed to the downward trend in prices.

Looking at other metals, the market witnessed mixed movements. LME aluminium experienced a 0.2% decrease to $2,491 per ton, while nickel saw a slight increase of 0.3% to $17,210. Zinc prices marginally dipped by 0.02% to $2,870.5, lead declined by 0.3% to $2,204, and tin faced a notable drop of 1.3% to $31,845. On the SHFE, aluminium prices decreased by 0.8% to 20,205 yuan per ton, nickel fell by 0.3% to 134,480 yuan, lead increased by 1.6% to 19,160 yuan, zinc rose by 0.1% to 23,730 yuan, and tin slumped by 3% to 264,770 yuan.

The current scenario in the metal market reflects a complex interplay of global economic factors impacting prices. As investors navigate through these fluctuations, staying informed about market trends and economic indicators becomes crucial for making sound investment decisions.