Copper prices dropped by 0.75% to ₹784.95, primarily due to weaker demand from China, the world’s largest copper consumer.
China’s unwrought copper imports fell to a 16-month low in August, with total imports down 12.3% year-on-year to 415,000 metric tons. This was largely due to reduced manufacturing activity and demand in key sectors like electric vehicles.
The weak U.S. economic data, particularly in manufacturing and the labor market, has exacerbated the downward pressure on copper, causing fears of a potential recession. BHP Group downgraded its forecast for China’s copper demand, affecting market sentiment.
However, the Yangshan premium, an indicator of Chinese copper import appetite, has shown resilience, rising to $62 a ton. Additionally, copper inventories in Shanghai Futures Exchange-monitored warehouses fell by 10.9%.
