Copper falls below $9,000 as dollar strengthens, China demand uncertain

Copper fell below $9,000 a ton for the first time in two months as the dollar continued its post-election rally. Futures on the London Metal Exchange have dropped roughly 7% since Thursday, driven by market expectations for a prolonged period of tight monetary policy under President Donald Trump.

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Trump’s plans to raise tariffs and cut taxes could increase inflation, a concern highlighted by recent US consumer price data showing its first annual rise since March. “We’re likely finding a new range as the dollar reprices,” said Nicholas Snowdon, head of metals research at Mercuria Energy Trading, adding that copper’s structural demand remains intact for the longer term.

Copper prices have dipped from their May highs as China’s demand outlook remains uncertain. Investors are cautious as they await clearer growth signals, including potential infrastructure spending to boost commodity demand. China’s industrial output and retail sales data, expected on Friday, are anticipated to show faster growth in October.

At 7:30 a.m. in London, copper was down 1.5% at $8,911.50 a ton. Other metals also fell, with zinc down 2.7% and aluminum off 0.9%. Iron ore futures in Singapore declined 1.8% to $98.75 a ton.