Copper Drops to Multi-Day Low on Weak China Profit Data

Key Moments

Market Overview

Copper prices moved lower on Monday, with the benchmark contract on the London Metal Exchange declining amid a combination of disappointing Chinese economic data and a firmer U.S. dollar that undermined sentiment toward the metal.

Benchmark copper on the London Metal Exchange fell 1.8% to $14,364 per metric ton at 0913 GMT. During the session, prices slipped to $14,354 per metric ton, marking the lowest level since Sept. 17.

Price Action

China Data Dampens Demand Outlook

Fresh economic figures from China put pressure on copper, as industrial profit growth in August slowed. Gains in technology manufacturing linked to the AI sector did not fully compensate for weaker domestic demand, raising concerns about the strength of copper consumption in the country.

China is the world’s largest copper consumer, so any sign of slowing industrial performance or demand typically has an outsized impact on pricing and investor sentiment in the copper market.

Macro Headwinds: Dollar and Energy Costs

The downward move in copper was compounded by a stronger dollar, which generally makes dollar-denominated commodities more expensive for holders of other currencies and can curb buying interest.

At the same time, rising oil prices added another headwind, contributing to the pressure on copper prices and reinforcing the cautious tone across the broader commodity complex.