Copper and aluminum prices faced sustained pressure on Thursday as macroeconomic headwinds intensified, with major bank analysts warning of deteriorating industrial demand. Copper on the London Metal Exchange extended its losses, and ING strategists Warren Patterson and Ewa Manthey attributed the decline to three interconnected factors: escalating inflation fears tied to the Iran conflict, weaker-than-expected economic data from China, and a strengthening US Dollar that makes dollar-denominated commodities more expensive for foreign buyers.
Copper, often viewed as a barometer of global economic health, is now caught between tight supply and a darkening demand outlook, ING noted, highlighting that short-term price action is being dictated by macro uncertainty rather than structural fundamentals. Meanwhile, Commerzbank warned that rising aluminium inventories signal persistently weak consumption, as stockpiles accumulate amid sluggish manufacturing and construction activity. The bank cautioned that without a meaningful demand rebound, aluminium prices will remain under pressure, putting further strain on producers.
The combined warnings underscore a broad risk-off sentiment across commodity markets, driven by geopolitical conflict, lackluster Chinese performance, and currency dynamics—conditions that could spill over into broader financial and crypto markets as investors assess global economic resilience.
