Copper is considered an economic measure because many different industries use the metal. This applies, for example, to construction, the automotive industry and the telecommunications sector.
Concerns about a potential recession due to interest rate hikes from the central bank could weigh on demand for copper. For example, companies will invest less and become more cautious in new projects.
In addition to fear of weak demand, a strong dollar also plays a role. This makes copper more expensive for traders dealing in other currencies, which may reduce demand.
At the beginning of this year, the price of copper exceeded $9,000 per ton. In March last year, the price reached a record high of about $10,900 due to fear of a Russian invasion of Ukraine.
The market downturn also affects commonly used metals such as aluminium, zinc, tin and nickel. Prices of precious metals such as gold, silver and platinum are also under pressure.
