Copper prices moved lower on Monday, falling to their weakest level in a week as the stronger U.S. dollar, softer economic data from China and rising oil prices weighed on sentiment across industrial metals markets.
Copper pressured by macroeconomic headwinds
The benchmark three-month copper contract on the London Metal Exchange declined 2.75% to $13,555 per metric ton by 08:19 GMT.
The retreat in prices reflected mounting pressure from several macroeconomic factors, including currency fluctuations and disappointing economic indicators from China, which remains one of the world’s largest consumers of industrial metals.
A firmer U.S. dollar made dollar-denominated commodities more expensive for holders of other currencies, reducing demand appetite across commodity markets.
At the same time, weaker-than-expected Chinese economic data reinforced concerns over slowing industrial activity and softer domestic demand, adding further pressure to copper prices.
Rising oil prices also contributed to broader market caution, as investors worried that higher energy costs could intensify inflationary pressures and weigh on global economic growth.