Investors have seen a new round of global economic slowdown, and there is no sign of a downgrade in the Sino-US trade war
Copper prices fell to their lowest level since mid-2017.
The price of copper, which has long been regarded as the economic growth table, has fallen by a total of 16% since mid-April, mainly due to the sharp drop in output of downstream factories and the warning that many major economies will decline.
In addition, the rebound of the US dollar poses another threat to copper prices because buyers who buy copper in other currencies have reduced their purchasing power because of the appreciation of the dollar
Offshore renminbi prices also fell to their lowest level since 2008, and the price of commodities denominated in the London Metals fell as a whole. Copper, lead, tin and zinc prices fell by at least 1%.
Although the chain of copper prices has disappeared, it cannot be ruled out that copper prices will fall even lower
If the macro economy is still weak, or if there are other negative shocks in the future, the possibility that copper prices will once again be under pressure will increase.
Washington and Chinese officials have no consensus on reopening the terms of trade negotiations, but the Oxford Economic Research Institute and the Nomura Research Institute have warned that China’s economic activities will slow further. The growth of the Chinese economy in the second quarter has fallen back to 6.2%, the lowest level in nearly three decades.
In addition, global electric vehicle sales recorded a decline for the first time, which made people’s demand for electric vehicles in the future less confident, and metal prices were hit by another blow. In addition, the deterioration of global macroeconomic factors also makes investors believe that signs of demand recovery will not occur. The order to cancel the order for copper has risen to the highest since this year on Tuesday.