Base Metals Preview: Copper Down 1% On Persistent Demand Concerns

28 Sep 2022 , 08:48 AM

Copper continues to be hammered by strength in dollar overseas and persistent worries that a recession will dent industrial activity and hurt demand for copper. US equities fluctuated on Tuesday before eventually ending the session mixed. While the tech-heavy Nasdaq managed to end the day modestly higher, the Dow and the S&P 500 once again fell to their lowest closing levels since late 2020. Meanwhile, the World Bank downgraded its growth projections for the East Asia and the Pacific region as the zero-COVID approach dampened Chinas economic growth. China, which constitutes around 86 percent of the regions output, is forecast to grow only 2.8 percent this year versus the prior outlook of 5.0 percent. This was also much weaker than the 8.1 percent growth estimated for 2021 as the zero-COVID measures disrupted supply chains, industrial and services production, domestic sales, and exports, the Word Bank noted. Copper futures were seen quoting down almost 1% at $3.26 per pound. Powered by Commodity Insights