The fall in copper prices indicates that investors are negative on the economic outlook, according to commodity strategists at the bank ANZ.
This is because, copper is seen as a key indicator of economic health following its use in many sectors.
Currently, prices are falling although there is little sign of a sharp decline in demand or an increase in supply.
Yet in China, it can be seen that there are signs of the picture of demand improving following the easing of Covid-19 restrictions.
Nonetheless, investors have taken the view that the tightening of monetary policy will lead to lower growth and is reflected in copper prices.
In the latest development, copper prices recorded the biggest quarterly fall since 2011 in the second quarter of this year.
In fact, analysts acknowledge that the performance of the copper market depends on how global sentiment changes when the Federal Reserve (Fed) raises interest rates.
However, the market may also continue to be plagued by tight supply issues and fiscal stimulus measures in China over the next six to 12 months will boost demand.
China will publish Gross Domestic Product (GDP) data on Friday which is expected to see an expansion of 1.2% in the second quarter of 2022.
