Copper prices experienced a decline on Monday, continuing the downward trend from the previous week due to concerns surrounding China’s property sector and the influence of a stronger dollar.
The three-month copper price on the London Metal Exchange (CMCU3) dipped 0.3% to $8,272 per metric ton by 0230 GMT. Following a 3.2% drop in the previous week.
Meanwhile, the most-traded September copper contract on the Shanghai Futures Exchange (SCFcv1) registered a 0.7% loss. Settling at 67,970 yuan ($9,362.13) per metric ton.
ANZ analysts noted that concerns about Country Garden’s liquidity (2007.HK) reignited focus on the troubled property sector. They cautioned that any default by Country Garden on its debt obligations would further weaken the already delicate investor sentiment.
Country Garden’s shares plummeted over 12% after the real estate company suspended trading in 11 of its onshore bonds starting Monday.
The dollar index (=USD) surged, reducing the appeal of investing in the dollar-denominated metal.