Copper sinks below US$9,000 threshold as metals selloff deepens

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Copper tumbled — falling below the US$9,000-a-ton threshold for the first time since early April — on the back of a selloff in global stock markets and rising pessimism about the outlook for demand in China and elsewhere.

Bars of copper in a storage area at the Valjaonica Bakra Sevojno AD copper mill in Sevojno, Serbia, on Friday, June 16, 2023. --

A heavy selloff in global technology stocks also is raising doubts about the strength of the burgeoning artificial intelligence industry, after investors piled into copper on a bet that usage would surge in data centers and associated power infrastructure. Pessimism about China’s growth trajectory worsened after last week’s Third Plenum — a key meeting of Communist Party officials — failed to deliver the type of stimulus that would support metals demand. Copper fell even as China’s central bank cut a one-year policy loan rate Thursday, just days after reducing another rate, in a bid to revive the economy.

Copper dropped as much as 2.2 per cent to $8,900 a ton and was trading at $9,010 as of 10:47 a.m. London time. Nearly all metals were lower on the LME, with tin declining 2.6 per cent and zinc losing 1.5 per cent.

 

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