Copper Markets Experience Unprecedented Shifts in Supply and Demand

The spread between the spot price and futures price of copper has reached its widest level since 1994, indicating weakening demand and a potential rough patch for the global economy. Falling prices and increasing inventories at London Metals Exchange warehouses suggest a decline in demand, largely driven by weakness in the Chinese economy. The ripple effects of China's economic slowdown could be felt worldwide. Copper, often seen as a predictor of global economic trends, has been less sensitive to GDP growth in recent years. Copper prices for December delivery were trading near their lowest level since May.