Copper prices and metal-related exchange traded products weakened Tuesday as anxiety over the Chinese economy continues to weigh on the demand outlook.
On Tuesday, the iPath Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJCTF) declined 0.1%, United States Copper Index Fund (NYSEARCA: CPER) fell 0.1% and iPath Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJCB) decreased 1.7%.
Meanwhile, Comex copper futures were 0.3% lower to $2.78 per pound. copper prices have weakened more than 15% since a June four-year high on growing unease over tariffs and a gradual slowdown in Chinese growth, which would reduce demand for metals used in construction and manufacturing. Year-to-date, JJCTF declined 18.4% and CPER decreased 16.9%.
Recent data revealed that inflation in China rose to a seven-month high last month, which diminishes the central bank’s ability to stimulate growth, and figures also showed a 49% year-over-year decline in home sales in China’s 10 major cities for this year’s Golden Week, a period typically marked by big-ticket purchases, the Wall Street Journal reports.