Copper price falls amid banking woes
The copper price fell on Wednesday as equities markets were shaken by fresh banking sector concerns.
Global markets were uneasy after Credit Suisse’s biggest shareholder said it could not provide more financial support to the Swiss bank.
Copper for delivery in May on the Comex market in New York touched $3.88 per pound ($8,536 per tonne), down 3% compared to Tuesday’s closing.
[Click here for an interactive chart of copper prices]
“The dollar index is stronger and the European equity market is down, with concerns about the banking crisis being the key driver,” said Dan Smith, head of research at Amalgamated Metal Trading, adding that those effects were partially offset by Chinese demand hopes.
China is the world’s largest consumer of copper, used in electrical wiring and construction.
Economic activity in China picked up in the first two months of 2023 as consumption and infrastructure investment drove recovery from pandemic disruption despite challenges of weak global demand and a downturn in the property sector.
Copper prices are a little more vulnerable to the market banking concerns than other base metals because the metal has had a relatively strong start to the year, Smith said.
(With files from Reuters)