Copper prices fell sharply on Monday, slipping to their lowest level in seven days as investors reacted to a stronger U.S. currency, disappointing economic figures from China and continued gains in oil prices.
Industrial metals pressured by economic concerns
The benchmark three-month copper contract on the London Metal Exchange dropped 2.75% to $13,555 per metric ton by 08:19 GMT.
The decline reflected growing concerns over global economic conditions, with traders responding to weaker Chinese data and unfavorable currency movements.
China, which is one of the largest consumers of industrial metals worldwide, released softer-than-expected economic figures, fueling concerns about slowing demand and weaker industrial momentum.
Meanwhile, the stronger U.S. dollar reduced the attractiveness of dollar-priced commodities for buyers using other currencies, placing additional pressure on copper prices.
Higher crude oil prices also added to investor caution, as markets worried that rising energy costs could lead to stronger inflationary pressures and slower economic growth globally.
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