Copper dips below $8,000 per tonne as worries of a recession spread

• Copper falls below $8,000 per tonne for the first time in 18 months.
•  Fears of an economic downturn weighed on the most important industrial metal.
•  Other metals began the third quarter on a negative note, with nickel down 3% and aluminum falling 2%.

Copper fell below $8,000 a tonne on Friday for the first time in over 18 months, as fears of an economic downturn weighed on the most important industrial metal in the world.

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The metal, which is often seen as an indicator of economic growth because to its use in everything from household appliances to electric vehicles, fell as much as 3% to $7,959 per tonne, putting it on track for its fourth straight weekly decline.

In spite of data showing a pick-up in manufacturing activity in China, the world’s largest buyer of raw materials, other metals began the third quarter on a negative note, with nickel down 3% and aluminum falling 2%.

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ANZ strategists stated in a report that the market believes the improvement is insufficient to offset the potential slowdown in developed economies.

The six main contracts on the London Metal Exchange saw their worst quarter since the 2008 global financial crisis, between April and June, because to fears that demand will be stifled by central banks swiftly increasing interest rates to combat inflation and slowing economic development.