Reports of a surprise interest rate cut in China did not improve sentiment in the base metals market. Copper hit a new low in more than three months on Monday, Bloomberg reports.
The decline in the base metals market continues. Last week, the LMEX index, which tracks the prices of aluminum, copper, lead, nickel, tin and zinc, fell 5.6 percent, the most in nearly two years.
On Monday, the price of copper fell for the sixth session in a row. This reflects concerns about China's economy. It was not weakened by Monday's surprise rate cut by the country's central bank.
Investors point to China's copper exports more than doubling in June, suggesting that domestic demand for the metal has weakened. Copper demand is considered a barometer of the economic situation.
In addition, increased Chinese copper exports pushed metal stocks in London Metal Exchange global warehouses to their highest level since September 2021.
In the afternoon, copper fell by about two percent. Since the beginning of the year, its price has risen by more than seven percent, and in the last one year – by eight percent.
