Copper Prices Hit One-Week Low on China Data and Stronger Dollar

Copper prices fell to their lowest point in over a week on Monday, pressured by a strengthening U.S. dollar and fresh data indicating slowing industrial activity in China, the world's top consumer of the metal.

Price Action

Benchmark copper on the London Metal Exchange (LME) dropped 1.8% to $14,364 per metric ton by 0913 GMT, according to Investing.com. During the session, prices touched a low of $14,354, a level not seen since September 17.

Demand Concerns Mount

The sell-off was primarily driven by new economic figures from China. The data showed that the country's industrial profit growth slowed in August, a key indicator of demand for industrial metals. This slowdown suggests that weak domestic demand is offsetting gains in specific sectors like AI-related technology manufacturing.

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As the world's largest copper consumer, signs of weakening industrial health in China typically weigh heavily on the metal's price outlook. The data reinforces concerns about the pace of the nation's economic recovery.

Macroeconomic Headwinds

A stronger U.S. dollar also contributed to the downward pressure on copper. A rising greenback makes dollar-denominated commodities more expensive for buyers holding other currencies, which can curb international demand.

According to the source, rising oil prices were also a contributing factor to the decline in copper prices, adding another layer of complexity for investors assessing the outlook for industrial commodities.