The copper prices hit their lowest level in nearly three months on Thursday, after economic growth in USA unexpectedly went into the red, fueling fears that a world growth weaker hit demand for metals.
The Gross Domestic Product of the United States fell at an annualized rate of 1.4% between January and March, reported Thursday the Department of Commerce in its forward estimate of GDP. It was the first decline since the recession induced by the pandemic almost two years ago. The economy grew at a solid 6.9% pace in the fourth quarter.
Benchmark three-month copper on the London Metal Exchange (LME) fell 1.7% to $9,687 a tonne at 16:00 GMT, after hitting a low since February 1.
Currencies also put pressure on metal marketsas the dollar index hit its highest level in two decades, making greenback-priced metals more expensive for buyers using other currencies.
The lockdowns in chinathe main consumer of metals, to fight against Covid-19has stoked concerns about overall demand for metals, as the country’s currency, the yuan, fell to nearly 17-month lows against the dollar on Thursday.
Peruvian police said Wednesday that they had evicted a indigenous community who set up camp inside a huge open pit at the Las Bambas copper mine, forcing operations to stop.
The World economy it will expand more slowly than forecast three months ago, according to Reuters polls of more than 500 economists.
Among other base metals, aluminum on the LME it fell 2.2% to $3,025; the lead it fell 1.3% to $2,251.50; the zinc it subtracted 2.4%, to 4,118 dollars; the nickel down 1% to $32,975; and the tin it was up 0.2% at $40,035.