Copper drops below $9,000 as metals slide on demand fears

Copper plunged below $9,000 a tonne for the first time since October and other metals slid on mounting worries about weak global demand.

Often seen as a barometer of the world economy, copper has slipped from a record high set in March as investor focus shifts from concerns about tight supplies to weaker consumption. Fears are rising that US monetary tightening, shaky European economies and stringent Covid-19 measures in top user China will hurt metals demand.

Copper dropped as much as 3.8 per cent on the London Metal Exchange on Thursday, while tin tumbled more than 9 per cent.

"So many bad things are stacking up," said Tom Price, an analyst at Liberum Capital. "China's economy was struggling coming into this year and then they got hit by Covid."

Elevated US inflation bolstered the case for the

Federal Reserve's aggressive push to rein in price pressures, which is heightening concerns of a recession in the world's largest economy and elsewhere. In China, a rise in Shanghai coronavirus cases -- and a default by a major property developer -- highlighted the headwinds.

Meanwhile in Europe concerns are growing about disruption to natural gas supplies from Russia, which could further hamper the continent's industrial economies. The commodity exporting heavyweight is retaliating to sanctions with its own penalties against firms including a German energy supplier.

Copper was down 3.7 per cent at $8,999.50 a tonne by 9:17 a.m. on the LME. Most other metals also traded lower, with zinc falling 2.9 per cent and aluminium retreating 1 per cent.