Copper falls to two-week low due to lower demand from China

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(Bloomberg) – Copper fell to the lowest level in more than two weeks amid concerns that a resurgence of the delta variant of the virus could derail demand in top consumer China.

The data showed that China’s appetite for a number of commodities waned in July even before a surge in the fast-spreading delta variant. For their part, copper and iron ore imports fell for the fourth consecutive month. Inflationary pressures are also increasing in the Asian nation, clouding the outlook for economic support from the central bank.

Base metals have been under pressure this month because China is battling its biggest covid-19 outbreak since the virus appeared. That led a group of banks to lower their growth forecasts for the Asian nation. In the US, a stronger-than-expected employment report has fueled speculation that the Federal Reserve may reduce its economic support program.

“There is no question that metal consumption in China is falling,” Malcolm Freeman, director of metals brokerage Kingdom Futures, said in a note.

Nota Original:Copper Falls on Concerns Over China Demand, Central Bank Support

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