Investors were concerned that efforts by central banks to control inflation will impede global economic development and lower demand for metals, which would result in copper prices experiencing their worst weekly decline in a year.
Other industrial metals also fell, with tin down 22% this week, its worst weekly decline since at least 2005, and nickel losing almost 13% this week.
Further losses could occur, according to independent analyst Robin Bhar. “A severe slowdown or recession appears to be imminent.”
At 1605 GMT, benchmark copper on the London Metal Exchange was down 0.5 percent at $8,367 a tonne after reaching $8,122.50, which was the lowest level since February 2021 and down 25% from a March peak.
According to Bhar, prices for copper, which is used in construction and power generation and has a production cost of roughly $7,500 to $7,500, will rise later in the decade due to a shortage of the metal and increased demand for its usage in electrification.
