Copper Prices Are Continually Declining and That’s Bad News for The Economy

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A decline to $3.14 would represent a peak-to-trough drop of 38% in just five months, and moves of that magnitude are typically associated with an economic pullback.

“Copper’s tendency to reflect economic conditions is evident in the chart [below]. The chart shows that after the starting dates of the past 10 OECD-defined global economic slowdowns, copper has been down by means of -4% six

But the decline in copper prices so far this year is not deep enough to suggest a sever economic slowdown is imminent, according to NDR. “2022 [copper price] declines have thus far been more consistent with moderate [economic] slowdown,” NDR said.