On Sunday, a slowdown in Western manufacturing prompted Goldman Sachs to cut its average copper price forecast for this year to $8,698/mt from $9,750/mt. Metals prices "reflect the global recession," Goldman added.

The latest data show that the manufacturing PMI in the euro zone in May was 44.6, which was lower than the expected 46. The manufacturing industry shrank at the fastest pace since the pandemic caused the closure of factories three years ago.

Markit’s flash US manufacturing PMI was 48.5 in May, a three-month low and slipping into the contraction territory. This reflects a sharp drop in demand, leading to a sharp decline in new orders.  

But there are still some who are optimistic about the outlook for copper prices this year, seeing a surge in demand for the metal this year, driven by renewable energy, electric vehicles and infrastructure upgrades. Bank of America on Monday reiterated its year-end copper price forecast of $10,000/mt as China ramps up investment in its power grid.

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