Reply To: Commodity Traders Weekly Outlook: Natural Gas and Oil Prices Slump While Grains Recover


Copper futures extended their drop to $3.8 per pound in late April, the lowest in nearly four months, amid a firmer dollar and concerns over weak demand.

Investors remained underwhelmed by purchasing activity from Chinese manufacturers after the country’s reopening. The Yanghsan copper premium has more than halved since mid-March to $23 per tonne, indicating supplies were ample amid muted demand for physical deliveries.

In the meantime, slow growth in the United States and expectations of tighter policy by the Fed hurt projections for U.S. demand.

Keeping a floor under the prices, data from the London Metal Exchange showed inventories decreased to 56,000 tonnes, the least since 2005, and Chile’s state-owned Codelco said the output in 2023 was estimated to sink as much as 7% after the 10.6% decline in 2022.