Copper futures fell toward $4 per pound in early September, losing nearly 3% so far this month as sentiment took a hit after weak US manufacturing data reignited recession fears.
Prospects of a US recession dampens the demand outlook for materials like copper. Analysts also flagged waning demand for commodities in top consumer China. Australian mining giant BHP Group recently downgraded its forecast for China’s copper demand amid concerns about the country’s economic recovery. Moreover, official data showed that manufacturing activity in China contracted further in August. Meanwhile, expectations that the US Federal Reserve will start cutting interest rates this month provided some support to commodity prices.
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Markets are now awaiting a crucial US jobs report that could influence the size of the Fed’s first rate reduction.
