Global Metal Prices Drop: Copper and Others Shaken

Metal Prices Plummet Worldwide

In global markets, investors' shift to a risk-off mode has led to significant declines in metal prices. The rising U.S. dollar and increasing uncertainties have caused a general pullback in the commodity market. Particularly, copper prices have dropped by %7.60 from record levels, falling to 100,110 yuan per ton.

Historic Drop in Copper Prices

According to data from the Shanghai Futures Exchange (SHFE), copper prices previously reached a record high of 114,160 yuan. Additionally, data from the London Metal Exchange (LME) shows that copper prices have decreased by %3.27, dropping to $12,727. This situation has been a sign of serious losses for investors.

Similar Trends in Other Metals

Alongside copper, other metals have also performed poorly. Copper prices on the SHFE fell by %11 to 392,650 yuan/ton, while on the LME, prices dropped by %7.15 to $48,240/ton. Other metals such as aluminum, zinc, lead, and nickel have also experienced similar declines. For example, on the SHFE, aluminum fell by %6.64, zinc by %5.64, lead by %1.61, and nickel by %8.09, while on the LME, aluminum decreased by %2.56, zinc by %3.13, lead by %1.67, and nickel by %4.65.

Market Uncertainties and Risk Appetite

These declines are supported by the rise of the Yangshan copper premium to $27 per ton. It has been noted that the reduced risk appetite among investors is influenced by news regarding Kevin Warsh's nomination for Fed chair. The strengthening U.S. dollar has further pressured dollar-denominated commodities, accelerating the declines. This situation has increased volatility in the commodity markets during a period of heightened uncertainties in the global economy.