Copper sinks to lowest since March 2021 on fears of global economic downturn (NYSE:FCX)

Copper sinks to lowest since March 2021 on fears of global economic downturn (NYSE:FCX)

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Copper prices plunged to their lowest level in more than a year on Wednesday, succumbing to concerns that rapid rate hikes may tank the global economy into recession while China continues its strict zero-COVID policy, hurting demand for metals.

In pre-market trading, Freeport McMoRan (NYSE:FCX) -4.7%, Vale (VALE) -4.2%, Rio Tinto (RIO) -4%, (BHP) -3.6%.

Among other stocks on watch: (TECK), (HBM), (SCCO)

ETFs: (NYSEARCA:COPX), (NYSEARCA:CPER), (JJC), (JJCTF)

According to Reuters, three-month copper (HG1:COM) on the London Metal Exchange recently was -3% to $8,725/metric ton after sliding to its lowest in 15 months at $8,691/ton.

Aluminum and other industrial metals have joined the selloff in risky assets; (AA) -4.5%, (CENX) -3.5%.

“Last week’s aggressive rate hike from the FOMC is continuously raising concerns about whether the economies around the world can cope with that kind of rapid increase,” Saxo Bank’s Ole Hansen said, according to Reuters, adding that the technical outlook for many LME metals was deteriorating and a break below $8,700/ton support in copper would trigger further losses.

Analysts at RBC Capital said recently that they expect global copper supply will outpace demand over the next two years.

Originally Posted on: https://seekingalpha.com/news/3850725-copper-sinks-to-lowest-since-march-2021-on-fears-of-global-economic-downturn?source=feed_tag_commodities
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