Copper maintains losses due to Chinese demand concerns

Copper futures fell below $4.2 per pound on Tuesday, hovering near their low since early April.

Last week, China's economic growth rate for the second quarter fell short of expectations, and economic indicators for June were mixed.

The 3rd National Congress, which came to an end the other day, was not a major policy change that could deal with economic issues, and since they persisted on continuing, it was not possible to excite investors.

Meanwhile, China's central bank surprised the market by cutting key interest rates on Monday, and the 1-year and 5-year prime rates hit record lows of 3.35% and 3.85%, respectively.

There are many opinions that the US Federal Reserve (Fed) will begin cutting interest rates in September.

On the supply side, copper stocks in LME warehouses have reached a high level since 2021/9, and stocks in bonded warehouses in China have reached a high level since 2023/5.