The red metal is key to a greener world. The push for carbon neutrality will boost demand for copper, used in everything electric from wires to chips. Yet the element is also a proxy for economic activity. The darkening outlook has undercut the bull case for copper. Prices have fallen by a third since March.
China is the world’s biggest copper buyer, consuming half of all global output. Its faltering property market is weighing on demand. New home sales are a leading indicator of copper demand. That is due to its use in appliances, electrical wiring and telecommunications gear.
The outlook for the sector is continuing to worsen. The country’s biggest developers reported a 40 per cent drop in home sales in July. For the year, property sales are on track to fall by nearly a third. That would be worse than the 2008 decline.