Three-month copper on the London Metal Exchange is now sitting around $4.08, this is down from this year’s high of $4.32 from just a few weeks ago.
Citi Research economists predict weaker demand due to a softer-than-anticipated China recovery and sustained weakness in the manufacturing sector outside of China.
This can be seen with The US manufacturing sector contracting further in January due to higher interest rates, but workers are not being laid off in large numbers which is one positive sign.
The strength of the US labor market is a key concern for the Fed which recently raised interest rates by .25 points.
We have seen other metals such as aluminum, tin, and zinc also on the decline this week, while lead increased.
We will update you next week on all metal and market news!
