Analysts forecast more pain for copper price after worst weekly drop since 2011

The copper price is coming off its worst week in almost a decade, but analysts feel there could be more downside for the metal as novel coronavirus (2019-nCoV) lockdowns globally wreck demand prospects.

The London Metal Exchange three-month copper price closed at $4,810 per tonne on Friday March 20, down 11% from the start of the week and hit a three-year low of $4,371 per tonne on Wednesday.
Governments are taking drastic measures to limit the spread of Covid-19, the disease spread by the coronavirus, with the world's top two copper producing nations Chile and Peru introducing measures that have caused major mines to close.
But while copper market supply is a risk, a lack of demand for copper end products remains the driving force of price direction, analysts said.
"It seems a complete oxymoron to get bullish while you're holed up in quarantine," London-based Citibank metals strategist Oliver Nugent said.

"The question is how long is this going to go on for? I don’t think the market is yet fully pricing in a...

Published

Archie Hunter

March 23, 2020

14:58 GMT

London