Copper slipped below $7,500 a tonne as fears of a global economic slowdown added pressure on industrial metals and accelerated their decline from record highs set just a few months ago.
Investors are worried about a range of threats to demand, from a gas crisis in Europe to an economic slowdown in the US and new virus outbreaks in China. Copper shed nearly 5% on Wednesday after falling 4.2% on Tuesday to its lowest close in 19 months. Aluminium, zinc and tin also declined.
Another mass testing for the virus in Shanghai is fueling fears that Beijing’s Covid-zero policy will hinder the recovery of the world’s second-largest economy. China was seen as one of the most attractive sources of demand given the government’s pledges to boost economic growth this half of the year.