China's slowdown is hurting the global copper market

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Now this is interesting. According to the FT, Goldman Sachs has significantly lowered its 2025 copper price forecast from $15,000 to $10,100 per tonne due to weakening Chinese demand, particularly in the property sector. Copper is an industrial metal, so this is a crucial signal to monitor, especially given that prior to the Covid pandemic, China embarked on one of the most ambitious infrastructure projects of all time.

The drop in copper prices has already occurred, from its peak in June this year, where it reached just shy of $11,000. It is now sitting at around $8,950 per tonne, and this is having a significant impact on the profit margins of major mining companies.

Another point worth mentioning is that copper is a vital material for renewable energy technology. Despite the market being supported by enormous demand for renewable energy infrastructure to meet carbon-zero targets, it is currently oversupplied with copper.

BHP remains optimistic about copper’s long-term prospects, expecting demand to outstrip supply later in the decade as clean energy adoption increases, but for now, subdued Chinese demand is taking its toll.

Source: Financial Times

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