Copper touched for at least seven months due to trade tensions between the United States and China | Economy | markets

The copper price hit a seven-month low today because the market has seen a drop in demand from China, the world's largest consumer, mired in a trade dispute with the United States that is slowing its manufacturing activity.

The London Metal Exchange's three-month copper (LME) closed down 1.6% to US $ 6,523 per tonne, after touching December 5's lows at US $ 6,519. Metal prices have plunged more than 10% since June 7th.

"Investors are disarming risk positions due to trade tensions threatening Chinese exports to the United States, as well as their profit margins," said John Meyer, an analyst for SP Meyer. "Industrial metals depend on China," he added.

China accounts for nearly half of world copper consumption, estimated for this year at about 24 million tonnes.

President Donald Trump imposed tariffs on imports of Chinese products, among other countries, generating retaliatory actions and increasing fears of a global trade war.

Growth in Chinese manufactured goods slowed down slightly in June due to higher cost fears for businesses and lower export orders due to escalating demand. commercial tension with the United States. private

A strong dollar has also weighed on industrial metals, making commodities listed in this currency more expensive for buyers who operate with other currencies.

Aluminum fell 1.6% to US $ 2,098 per ton, while zinc dropped 1.1% to $ 2,822 and lead loss from 1% to US $ 2,386. Tin remained unchanged at US $ 19,750 and nickel declined 2.3% to settle at US $ 14,550.