On August 29, copper futures prices traded lower due to a continued fall in Chinese industrial profits and anticipated low PMI data.
At the time of writing, the red metal is fluctuating by 2.54% to $3.603 per pound. It substantially declined this year amid an economic downturn in China, which is copper’s largest importer.
Besides, the country’s frail industrial figures continued the metal’s further losses as Chinese industrial profits continued to plummet in July.
It declined by -1.10% to ¥48.93 trillion in the first seven months of 2022, lower than the analysts’ forecasts of 1.30% and below the previous record of 1.00%.
The drop is attributed to the nation’s combat against the resurgence of coronavirus infections alongside the energy shortage caused by the ongoing heatwaves.
Last month, China’s economic slowdown deepened, with both retail sales and industrial output disappointing experts’ projections.
Now, market participants anticipate the purchasing managers’ index release later this week, which could further pull copper’s price into the red zone.
The NBS manufacturing PMI is expected to decrease to 48.50 points, less than the precursory reading of 49.00.
Also, the non-manufacturing data are forecasted to tumble to 52.00, below the former result of 53.80.
Moreover, the general PMI in the same month is predicted to slide to 50.60, lower than the prior statistics of 52.50.
Precious metals’ prices
In addition, the price of precious metals also tumbled on Monday amid Fed Chair Jerome Powell’s hawkish remarks at the recently held Jackson Hole symposium.
Currently, gold futures for December delivery are fluctuating by 0.69% to $1,737.70 per troy ounce, hitting a one-month low.
Likewise, silver contracts for September distribution are trading lower by 1.90% to $18.390 an ounce.
Also, the price of platinum futures for October arrivals are tumbling by 1.37% to $843.55 per troy ounce.
Besides, palladium contracts for December dispatch are contracting by 0.06% to $2,131.52 an ounce.
