The price of copper registers a notable drop to its lowest level in the last five weeks, due to worrying demand prospects in the world’s main consumer, China. In that sense, attention is focused on the deterioration of the Chinese real estate sector and the debt challenges it faces.
In the London Metal Exchange (LME)), the reference copper shows little variation, operating around US$8,291 per ton. However, it had previously hit $8,251, its lowest level since July 7.
It should be noted that since August 1, the prices of this metal, used in industries such as energy and constructionhave experienced a 7% drop.
In the center of the attention of the operators is the suspension of the listing of 11 “onshore” bonds by Country Garden, the main private real estate developer in China, which accentuates the focus on the real estate sector.
The Widmer company, specialized in the area, forecasts a slight deficit in the copper market for this year, estimating around 253,000 tons, and global consumption of 25.6 million tons, which represents an increase of 1.8% compared to with the year 2022.
Among other base metals, aluminum is down 1% to $2,513 a tonne after previously hitting $2,152, its lowest level since July 10. Likewise, zinc presents a loss of 1.7%, trading at US$2,356, while lead decreases 0.2%, settling at US$2,104. Tin shows a steeper fall, down 3.2%, reaching $25,600, while nickel is holding steady at $20,210.
Downward projections in China
For July, there was a decline in new bank loans in China, accompanied by weakening in other key credit indicators. Despite the measures taken by the monetary authorities to reduce interest rates and provide support to the struggling economy, the situation persists.
Operators and analysts await data on industrial production, urban investment housing prices and the Asian country’s Gross Domestic Product (GDP), which will be published later in the week. These data are sought as indicators that provide clues about the health of the world’s second largest economy.
Source: Larepublica
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