Copper has dipped below $7,000 a ton for the first time since September 2020.- The commodity is seen as a key economic bellwether and is currently in a bear market.
$4 has slipped below the $7,000 a ton level for the first time since September 2020.
The commodity, which is a major component in electrical equipment like wiring and motors, fell as low as $6,953 a ton on the London Metal Exchange, as it slipped 1.52% on Friday.
Copper is seen as a $4 before every recession in the last 20 years.
It's now fallen 27.4% year-to-date, with Chinese coronavirus lockdowns driving a broad and deep sell-off.
"This shift in the state of metals pricing today will likely persist until sufficient conviction in the efficacy of Chinese stimulus," a team of Goldman Sachs strategists led by Nicholas Snowdon said. "China will likely break the bear market."
Investors are fretting about a recession as global growth slows, inflation surges, and the Federal Reserve aggressively hikes interest rates to try to tame soaring prices.
Data on Friday showed economic growth in China — the world's largest
Stagnant demand has dragged on other other major commodities as well, with $4 plummeting to its pre-war level of below $100 a barrel and $4 tumbling over 20% over the last three months as soaring mortgage rates curb demand.
"Towards commodities, you have disinflationary pricing," Virtus Investment Partners' chief market strategist Joe Terranova $4. "The price of oil is below $100, copper is down and it expands beyond that, it's lumber, agriculture, and soft commodities."
"The commodities story is a weak one," he added.