Copper Futures Prices Fall Sharply Amid Concerns over Economic Outlook

LME copper closed at $8,188.5/mt overnight, a decline of 3.48%.Trading volume was 35,000 lots and open interest stood at 254,000 lots. The most active SHFE 2306 copper contract finished at 64,510 yuan/mt overnight, down 2.76%. Trading volume was 113,000 lots and 198,000 lots.

On the macro front, the dollar rose against the euro and pound yesterday and hit an over one-week high against a basket of major currencies, as markets sought safety haven after a barrage of economic data prompted a reassessment of the outlook for global monetary policy. In terms of fundamentals, import losses turned into profits. Meanwhile, due to the decline in the absolute prices of copper, the enthusiasm for downstream procurement has increased, and the market activity has increased significantly.

However, according to downstream processing enterprises, the orders from terminal enterprises have not increased significantly, the performance of consumer demand is average, and more market transactions were due to dip buying. As domestic demand has not improved, most companies are cautious. Copper prices will fluctuate at lows amid concerns over economic prospect.

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