Copper futures dipped below $4.20 per pound on Tuesday, reaching nearly a two-month low as worries about China’s economic slowdown and underwhelming stimulus efforts weighed on the market.
Copper declines to two-month low
Fresh data showed that Chinese banks issued just 500 billion yuan in new loans for October—significantly lower than both September’s levels and the projected 700 billion yuan. Additional data from the weekend indicated weaker-than-expected consumer inflation and deepening producer price deflation, highlighting persistent economic pressures.
China introduced new debt package
Last Friday, China introduced a 10 trillion yuan debt package to support local government financing, yet it fell short of the direct economic stimulus investors had been hoping for. Copper prices were also pressured by a stronger US dollar, which gained on expectations of robust growth under a renewed Trump administration.
