Copper crash deepens as recession fears dominate metals trading

6th July 2022

By: Bloomberg


Font size: - +

Copper extended a sharp retreat after the economic bellwether suffered one of its worst days since the depths of the pandemic in 2020 on growing fears of a global recession.

Investors are fretting over a range of threats to demand, from Europe’s gas crisis to a US slowdown and renewed virus flare-ups in China. After a 4.2% slump on Tuesday to its lowest close in 19 months, copper fell further Wednesday along with aluminum and zinc.

A fresh round of mass virus testing in Shanghai underscored concerns that China’s Covid Zero policy will complicate the recovery for the world’s second-biggest economy. The country was seen as one of the brighter spots for demand, given government pledges to reboot growth this half.

The last quarter was the worst for metals since the great financial crisis in 2008, and July has brought little relief as fears of a recession dominate markets. The chances of a US economic contraction are now 38%, according to the latest forecasts from Bloomberg Economics.

Copper fell 1.1% to $7 589 a ton on the London Metal Exchange as of 11:03 a.m. in Shanghai, dipping below the $7 597 intraday low on Tuesday. Aluminum dropped 0.9% and zinc was down 0.4%

The sell-off across metals is also slamming miners, with Rio Tinto Ltd. losing almost 6% in Australia. BHP Group dropped around 5% and copper miner Oz Minerals Ltd. fell as much as 5.6%.

Edited by Bloomberg


The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?