Copper Spirals to 19-Month Low
Recession Fears Dominate
Copper fell to its lowest price in 19 months, with metals extending losses as global recession fears continue to damp the demand outlook for commodities.
Sentiment remains sour for industrial materials used in everything from construction to new energy vehicles. Copper, widely considered an economic bellwether, is trading well below $8,000 a ton after metals posted their worst quarterly slump since the 2008 financial crisis.
“Sentiment in US industry is becoming more gloomy, in other words; we interpret this as a sign that the US economy is losing momentum,” Commerzbank AG analyst Carsten Fritsch said in a report. “Concerns about a global recession continue to predominate on the metals markets.”
The chances of a US recession are now 38%, according to the latest forecasts from Bloomberg Economics.