Copper Falls on Strong US Dollar and Slow Chinese Growth

A decline in copper prices yet again highlighted the metal’s dependence on the Chinese economy. Copper fell 1.9 percent on the London Metal Exchange and hit $5,771, according to Reuters. The dip reflected the strong U.S. dollar and an overarching decline in Chinese economic performance.

China is the world’s largest copper consumer, but recent economic data from the Asian nation shows softening factory sector performance. Factors from weakening Chinese factory performance are compounded by the strong dollar, which makes dollar-priced commodities more expensive for Chinese manufacturers.

Comex copper for May delivery dropped 1.83 percent to reach $2.622 a pound, according to Investing.com.