Copper drops to 1-week low on demand concerns
XLB•Copper fell 1.8% to $14,364 a metric ton, its lowest since September 17, as weak Chinese data, rising oil prices and a stronger dollar weighed on demand prospects.
1. Demand concerns weigh
Benchmark copper on the London Metal Exchange fell to a more-than-one-week low on Monday. China’s industrial profit growth slowed further in August, with strength in technology manufacturing amid the AI boom outweighed by persistently weak domestic demand.
2. Technical levels and oil
Copper’s fall below its 21-day moving average near $14,430 could point to further losses, with support at the 50-day moving average near $14,175. Brent crude rose more than 2% after Donald Trump rejected an Iran peace deal; traders said oil nearing $110 a barrel raised concerns about growth, inflation and higher interest rates.
3. Other metals and outlook
Traders expect Chinese manufacturing purchasing managers’ surveys due this week to provide insight into industrial-metals demand. Aluminium fell 1.3%, zinc 1.9%, lead 1.2%, tin 1.6% and nickel 0.9%; concerns about LME copper supplies again created a premium for cash over three-month copper.
