Copper prices fell to a minimum in the last 17 months

On Friday, July 1, copper prices fell to their lowest level in the last 17 months due to fears of a contraction in the global economy and falling demand for the metal. This was reported by Interfax-Ukraine.

Copper futures on the New York Exchange sank 3%, falling below $3.6 a pound, the lowest level since January 2021. Spot copper prices in London fell below $8,000/t.

“Market sentiment remains subdued due to earlier worries about inflation and recession. Copper sank hard, as did nickel,” said an analyst at brokerage company Markets.com Neil Wilson.

According to analysts, the change in copper prices shows the direction of the global economy in the near future.

“The fall in the cost of the metal, which is used in many industries, indicates a high probability of a deterioration in the economic situation,” the report concludes.

Recall that a week earlier, prices for world copper market fell to the lowest level since March 2021 amid a global economic downturn that is undermining investor sentiment. Metal prices for July delivery dropped to $8.55 thousand per ton on the stock exchange in New York, and to $9.97 thousand per ton in Shanghai.

Note that in the coming years predicted a multiple increase in demand for copper due to an increase in the production of electric vehicles. In order to avoid an increase in the shortage of copper, it is planned to introduce additional capacities for its production in the next 5-7 years.

As GMK Center reported, at the end of 2021 world production refined copper amounted to 24.5 million tons, and real consumption – 25.3 million tons. The deficit amounted to 475 thousand tons, which is almost the same as in 2020.

The decline in Russian copper exports has caused some tension in a growing and scarce market. Copper production in Russia in 2021 amounted to 875 thousand tons, or 4% of the world.