Investors are skeptical about the swift recovery of the Chinese economy, which consumes approximately half of the world’s copper. As a result, the price of copper on the global market is falling. The emergence of risks related to the debts of local authorities, which are used to finance infrastructure projects, is also causing concern.
The demand for copper is also suffering from the negative impact of the actions of the US Federal Reserve. Aggressive measures to tighten monetary policy have undermined investor confidence. Recent comments from officials indicate the possibility of further interest rate hikes, which only exacerbates the situation in the copper market.
Furthermore, the decline in prices of zinc and other metals is having a negative effect on copper, confirming the potential for further reduction in its value.
Investors are actively divesting from copper, anticipating its further decline, which only worsens the situation in the metals market.
