Copper plunges to its lowest mark in 17-months as the economic bellwether slumps further into a bear market
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- Copper slipped below $8,000 per ton on the London Metal Exchange, its lowest mark since February 2021.
- The key metal, which is considered an economic bellwether, dropped roughly 20% last quarter.
- Copper has entered a bear market before every recession in the last 30 years.
Copper moved below $8,000 per ton as part of a broader rout in metals sparked by global recession fears.
Prices fell as much as 2.3% Tuesday to $7,825 a ton on the London Metal Exchange — its lowest mark since February 2021.
The metal, which is considered a bellwether of the global economy, is coming off its worst quarter since 2008 as it dropped nearly 20% in the span that ended last Thursday.
The key industrial material has sunk in recent months along with aluminum, nickel, iron, and zinc amid mounting recession concerns.
Before every recession in the last 30 years, copper has entered a bear market. Central banks around the world are hiking interest rates as inflation surges, and many analysts expect a downturn to follow.
Fears of a slowing economy have dominated copper trading, Citic Futures analysts wrote in a note, according to Bloomberg. It's possible that prices drop further, they said, though a technical correction in the near term remains possible.
There's a chance that the metals reverse course once again if China puts an end to its stringent COVID-19 lockdowns that have dampened demand and manufacturing activity.
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