Copper Prices Under Pressure from Weak Chinese Economic Data

Copper prices faced pressure during today's trading, influenced by weak economic data released from China, the largest consumer of the metal globally, reviving concerns about demand in the second-largest economy in the world.

According to TradingEconomics, copper futures stabilized around $5.30 per pound after a nearly 3% decline in the previous session, following signs of a slowdown in Chinese economic activity.

Disappointing Data Pressures Sentiment

The data showed that retail sales and industrial production growth in November fell short of market expectations amid weak domestic demand, while investment in fixed assets declined more than estimated, heightening concerns about growth prospects.

New home prices continued to drop for the twenty-ninth consecutive month, indicating ongoing pressures in the real estate sector, a key driver of copper consumption.

Financial Concerns Increase Pressure

Concerns intensified after bondholders rejected a proposal from China Vanke to postpone a due payment by one year, raising fears of a potential default by the company and casting a shadow over investor sentiment in industrial metal markets.

Supply-Side Support

Despite these pressures, copper maintained trading near its highest levels in several months, supported by declining inventories at the London Metal Exchange and global supply constraints, which limited short-term losses for the metal.