Copper Prices Fall to One-Week Low on Weak China Data, Stronger Dollar

Copper prices fell to their lowest point in more than a week on Monday, as disappointing economic data from top consumer China and a strengthening U.S. dollar weighed heavily on the demand outlook for the industrial metal.

According to a report from Investing.com, benchmark copper futures on the London Metal Exchange (LME) had fallen 1.8% by 09:13 GMT. The contract touched its lowest price since September 17 during the session.

China Demand Concerns Mount

The primary catalyst for the decline was official data from China showing that growth in industrial profits slowed in August. As the world's largest consumer of copper, signs of weakening domestic demand in the country tend to have an immediate negative impact on the metal's price.

While the data indicated some strength in technology-related manufacturing, it was not enough to offset broader sluggishness, fueling investor concerns about the health of China's industrial sector and its appetite for raw materials.

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Macroeconomic Headwinds

A strengthening U.S. dollar added to the pressure on copper. A rising greenback makes dollar-denominated commodities more expensive for buyers using other currencies, which can curb global demand.

The Investing.com report also noted that rising oil prices were an additional factor. Higher energy costs can increase operational expenses for mining and smelting, while also contributing to inflationary pressures that could dampen global economic activity.