The price of a tonne of copper in the London metals market fell almost 2 percent to $ 7650. Declines were also seen in the previous two trading sessions. Copper is often regarded as a kind of barometer of the global economy, as the metal is used in many different sectors, such as construction, automotive and telecom. In March, the copper price rose to a record level of approximately USD 10,900 per tonne due to fears of disrupted supplies from Russia due to the war in Ukraine.
Prices of other commonly used metals such as aluminum, zinc, lead, tin and nickel are also under pressure, as are gold, platinum and silver.
Due to the strong interest rate hikes by, among others, the US Federal Reserve against the high inflation, it is feared that the economy could end up in a recession. The energy crisis in Europe is also causing economic headwinds. The corona lockdown in Chengdu is now on top of that. This metropolis is an important economic center in China, the second largest economy in the world and one of the largest importers of metals in the world.