Copper sinks below $8,000 a ton

Bloomberg

Copper sinks below $8,000 a ton, hitting its lowest since early 2021, as deepening fears about a global economic slowdown drive a rout in industrial metals.
The metal, widely considered a barometer of the world economy, slumped as much as 3.6% to $7,959 a ton in London, extending losses after its worst quarter in a decade. Investors appear increasingly convinced that growth is set to fade amid tightening monetary policy and an energy crisis centered on Europe.
The copper market will face a surplus of about 10% of total supply in the coming two years based on scenario of a hard landing for the US and Europe, with the weak recovery in China unable to offset global declines in demand, he added, citing an estimate from the broker.
Aluminum, nickel and zinc also extended losses, opening the second half on a gloomy note after the LME’s index of six base metals racked up its steepest quarterly slump since the 2008 financial crisis.
Stocks and equity futures also retreated on Friday.
It’s a rapid reversal from conditions early in the year, when a combination of booming demand, logistics snarl-ups and production outages sent prices for metals including copper and nickel spiking. Even as the storm clouds darken on the demand front, many metals are still facing acute supply constraints.
Copper was down 3.1% at $8,003.50 by 1:03 p.m. on the London Metal Exchange. Aluminum fell 1.9%, while nickel was 3.7% lower. Iron ore also retreated in Singapore as fears resurfaced that the Chinese government will mandate steel output curbs at a time of weak demand and rising inventories.