Global copper short-term outlook July 2022

The sell off in the market that emerged in June continued through the first half of July amid an increasingly gloomy outlook for the global economy. Copper prices fell to their lowest level since November 2020, falling just below the US$7,000/t level mid-month and well off the peaks in the prior months. Prices have since recovered to trade above US$7,800/t, initially buoyed by signs of improvement in the Chinese economy as post-lockdown business activity and confidence improved, despite disruptions from sporadic Covid-19 outbreaks across the country. Copper gained further momentum on a weaker dollar and news that the Chinese regulator is to step up efforts to support the struggling property sector by extending loans to qualified real estate projects where reasonable.