The strong US Dollar (USD) continues to weigh on metal prices. Copper slipped below the $9,000 per ton mark this week, Commerzbank’s commodity analyst Volkmar Baur notes.
Copper price can fall towards $8,500
“According to a survey of participants at a major copper conference in Asia, the price could even fall to $8,500 per ton in the first quarter of 2025. However, there are also many critical voices pointing to the scarcity of copper concentrate, which is slowing down production. One analyst puts next year's deficit at over 1 million tons.”
“The capacities of Chinese copper smelters, which are expected to increase by a further 1 million tons next year, are likely to be utilized at only 75%. A slowdown in activity is also becoming apparent at the current margin. A company specializing in satellite observation reports that the proportion of inactive Chinese copper smelters has risen by almost 5 percentage points to 15.5%.”
“This means that capacity utilization is likely to be as low as in April, when smelting was restricted by maintenance work. Official data on Chinese copper production will probably be released in the next few days. The data published today on industrial production did not yet include these details.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays pressured near 1.0800 on Trump's 'Liberation Day'
EUR/USD keeps the red at around 1.0800 in European trading on Wednesday as investors rush for the safe-haven US Dollar, aniticpating US President Donald Trump’s long-threatened “reciprocal” tariffs package, due to be announced at 20:00 GMT.
GBP/USD trades with caution above 1.2900, awaits Trump’s tariffs reveal
GBP/USD is trading with caution above 1.2900 in the European session on Wednesday, Traders remain wary and refrain from placing fresh bets on the major, anticopating the US 'reciprocal tariffs' announcement on "Liberation Day' at 20:00 GMT.
Gold price stabilizes ahead of Trump's tariffs announcement on “Liberation Day”
Gold price stabilizes just above $3,130 at the time of writing on Wednesday following a mean reversal move the prior day after a fresh all-time high got eked out at $3,149 before closing in negative territory. The Gold rush rally stalled ahead of Trump officially announcing the reciprocal tariff implementation later this Wednesday at the White House
ADP Employment Change projected to show US job growth gaining in March
The US labor market is poised to steal the spotlight this week as concerns over a potential slowdown in economic momentum remain on the rise — an unease fueled by recent signs of slower growth and troubling underlying data, aggravated by the ongoing uncertainty surrounding US tariffs.
Is the US economy headed for a recession?
Leading economists say a recession is more likely than originally expected. With new tariffs set to be launched on April 2, investors and economists are growing more concerned about an economic slowdown or recession.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.