Copper Crash Deepens as Fears of Recession and Virus Outbreaks in China Loom

A fresh round of mass virus testing in Shanghai underscores concerns that China’s “zero-Covid” policy will complicate the recovery in a country that had been seen as one of the brighter spots for copper demand of late. Photo: Bloomberg

(Bloomberg) — Copper resurfaced above its $7,500 per ton plunge as fears of a global economic slowdown piled pressure on industrial metals and deepened their dive from record highs just months ago.

Investors are fretting over a range of threats to demand, from Europe’s gas crisis to a U.S. slowdown and renewed virus flare-ups in China. After a 4.2% slump on Tuesday to its lowest close in 19 months, copper fell almost 5% on Wednesday, before paring some losses. Aluminum climbed while nickel and tin sank.