Copper Futures Decline Amid Weak Chinese Economy and Rising Inventories

Futures contracts for copper fell today on the London Metal Exchange (LME) due to concerns about a weak Chinese economy, as markets anticipate continued reduced demand from the world's largest consumer of copper. The decline was also influenced by an increase in copper inventories.

Data from the International Copper Study Group indicated that global refined copper production rose by 6.1% year-on-year from January to May, reaching 11.57 million tonnes. During the same period, global consumption increased by 3.7% to 11.16 million tonnes. This expanded the global copper market surplus to 416,000 tonnes in January-May, up from 154,000 tonnes in the same period last year.

As of 0810 IST, the three-month copper contract on the LME was at $8,970 per tonne, down 1.5% from the previous close.