Copper prices continued to decline for the fourth consecutive week as economic data from China revealed ongoing weaknesses in the metal’s largest market. At 2:42 p.m. in Shanghai, copper dropped by 0.9% to $9,655 per ton, on track for its lowest closing price on the London Metal Exchange in two months. China, the world’s second-largest economy, released figures on Monday that raised concerns about a sluggish demand recovery. While retail sales showed some improvement in May, industrial output and fixed-asset investment experienced slower growth, and the housing market downturn worsened. President Xi Jinping’s administration has implemented various measures to support growth and stabilize the property sector, but the latest data has prompted calls for more robust action. The decline in real estate investment and home prices accelerated in May.
According to Wang Yingying, an analyst at Galaxy Futures Co., the Chinese property sector continues to decline despite the implementation of several easing policies. This has led to a widespread pessimism among people regarding the property market.
In recent weeks, copper prices reached a record high of over $11,000. However, concerns about increasing global inventories and signs of weakness in China have caused copper prices to rapidly decline. Furthermore, metals faced additional pressure last week as the Federal Reserve scaled back expectations for interest rate hikes.
Iron ore futures in Singapore experienced a 2.3% drop, reaching $104.95 per ton. Additionally, aluminum prices have been decreasing and are heading towards their lowest level since April. This decline is attributed to China’s record-breaking monthly output of the metal.