Metals prices were falling as the latest figures from top consumer China weighed on market sentiment, revealing the country’s economy grew at one of its slowest rates in decades last year.
Meanwhile, the impact of shipping disruptions in the Red Sea seems to be having only a marginal impact on commodities, but further escalation of the conflict could be supportive for prices.
“While the conflict at the Red Sea is not directly translating into higher base metals prices, the indirect impacts are mounting, possibly delaying shipments and increasing freight costs,” Sucden Financial said.
Copper prices are likely to trough around $8,000 a metric ton in 3Q , Macquarie said, who raised its expected copper-price nadir from a previous forecast of $7,600/ton.
“We have taken a more constructive view” following supply disruptions that suggest a smaller-than-anticipated surplus of the metal in 2024, it said.