FX.co ★ Copper Tumbles as China Factory Data Disappoints

Copper futures experienced a decline of over 2%, settling at approximately $4.70 per pound on Tuesday. This downturn comes as a reversal from the previous day's gains and is attributed to disappointing economic indicators from China, the world's top consumer of copper. A private survey revealed an unexpected contraction in China's manufacturing activity for May, marking it as the lowest level seen in over two years. This data highlights the mounting pressure from US tariffs, evidenced by a sharper decline in new export orders. These findings are consistent with Saturday's official PMI report, which also indicated a second consecutive month of reduced factory activity. The fall in copper prices follows a significant 5% increase on Monday, prompted by concerns that copper might be the next focus of escalating trade tensions. Heightening market speculation were US President Donald Trump's threats to double tariffs on steel and aluminum imports to 50%, coupled with an ongoing investigation in the US regarding copper imports.