Copper on July 6 plunged below $7,500 a ton, as increasing fears of a global recession hit the industrial metals market, lowering prices from its record highs a months ago.
Article cross-posted from our premium news partners at The Epoch Times.
The price of copper has dropped by 7.1 percent week over week, according to a Twitter post from Hedgeye, an online investment research and financial media company.
Copper fell by as much as 4.9 percent to $7,291.50 a ton on the London Metal Exchange (LMEX)—its lowest level since November 2020 after recovering to $7,552 a ton by 12:43 p.m. BST.
The mineral had already been hit by a 4.2 percent slump yesterday going below $8,000 a ton, reaching its lowest close in 19 months.
Meanwhile, aluminum lost 0.7 percent in value, while nickel was down 2.2 percent, and lead climbed 1.9 percent.
This is major turn from March, when the LMEX Index of six strategic metals rose to an all-time high after the Russian invasion of Ukraine sparked fears of global fuel and commodities shortages.
This last quarter witnessed the worse results for metals since the 2008 Great Recession, with the current month bringing little relief, as the risk of a recession dominates market sentiment.
Investors are worried over shake ups in the supply chain, such as the Russian sanctions-induced fuel crisis in Europe, a faltering American economy, and severe central government-induced lockdowns in Mainland China.
Companies hoped that China would be a major source for demand for commodities, after the CCP had promised to restart growth in the second half of 2022.
Meanwhile in America, there are also increasing concerns over the Federal Reserve’s aggressive and delayed interest rate policy, which may instigate a severe and sustained downturn, while trying to tame rising inflation.
The central bank’s attempt to curb demand is already beginning to curb U.S. economic growth.
The meeting minutes from the Federal Reserve’s last FOMC conference on June 14 came out this morning, suggesting another 50 or 75 basis point move in July.
“In discussing potential policy actions at upcoming meetings, participants continued to anticipate that ongoing increases in the target range for the federal funds rate would be appropriate to achieve the Committee’s objectives,” the minutes stated.
“In particular, participants judged that an increase of 50 or 75 basis points would likely be appropriate at the next meeting.”
“Participants recognized that policy firming could slow the pace of economic growth for a time, but they saw the return of inflation to 2 percent as critical to achieving maximum employment on a sustained basis,” the board members admitted.
Analysts are now shifting their focus from inflation to whether and when a U.S. recession will hit, with the chances of an economic contraction now standing at 38 percent, according to Bloomberg Economics.
Falling commodity prices are a key sign that there will likely be a recession in the United States this year, according to Joe Terranova, chief market strategist at Virtus Investment Partners to CNBC on July 5.
He believes that a recession is likely to happen this year, rather than in early 2023, as others have suggested.
“It’s obvious to us that the recession conversation shouldn’t be about one in 2023,” Terranova said. “It should be about one in 2022—if we’re not already in one right now.”
Investors should keep an eye on oil, copper, lumber, agriculture, and soft commodity prices, he said, noting that they are a potential harbinger of recession, as a major drop would signal deflationary pricing.
Before every recession in the past three decades, falling copper prices have been a sign of a pending economic crisis.
“The calendar has turned into July, and the market isn’t pricing based on inflation, it’s pricing based on an expected recession,” Terranova said.
Oil prices fell in June, after topping $120 a barrel in March and April, with Brent crude dropping 13 percent at $104 a barrel today, while West Texas International crude fell 16 percent to hover just over $100 a barrel.
Lumber futures have been down at least 27 percent over the last three months, as rising housing costs and mortgage rates curb demand for building materials.
If rising inflation continues and an economic downturn hits, demand will take a severe fall.
Analysts anticipate investors rushing to the U.S. dollar as a safe haven during the period of market instability, adding further pressure.
Discover the Freedom of True American Healthcare: Why America First is Revolutionizing Protection for Patriots
In a world where government overreach and skyrocketing premiums are squeezing the life out of hardworking Americans, one innovative agency is standing tall for liberty and affordability. Meet America First Healthcare—the private health insurance powerhouse dedicated to putting *you* first.
Founded by entrepreneur Jordan Sarmiento, this isn’t just insurance; it’s a shield for your family’s future, built on the unshakeable belief that private enterprise delivers better results than bureaucratic red tape.
Picture this: Jordan’s own story hits close to home for so many of us. A sudden medical emergency landed him with a staggering $95,000 bill. Under a traditional plan? He’d be buried in debt. But with America First’s patented health insurance, that nightmare shrank to just $500 out-of-pocket. That’s not a fluke—it’s the promise of coverage that works *for you*, from day one.
Breaking Free from the Chains of Conventional Coverage
Let’s face it: The status quo stinks. Marketplace.gov and big-insurance behemoths hit you with sky-high deductibles—thousands you’d have to pay before benefits even kick in—leaving massive holes in your protection. Need a routine mammogram, colonoscopy, or EKG? Good luck without forking over more cash. And don’t get us started on the gaps in dental, vision, or critical illness support when heart attacks, cancer, or kidney failure strike.
America First Healthcare flips the script. As a proud advocate for private solutions over government intervention, they craft custom plans that slash costs by 20% compared to traditional options. We’re talking comprehensive coverage that includes:
- Preventative and Wellness Care: Physical exams, screenings, and EKGs covered right away—no waiting games.
- Telemedicine Access: Virtual doctor visits anytime, anywhere, for that peace of mind.
- Accident and Critical Illness Protection: Real safeguards against life’s curveballs.
- Add-On Boosts: Dental, vision, disability, and supplemental plans to plug every leak.
Whether you’re an individual stepping off your parents’ plan, a growing family with kids in tow, or a small business owner tired of employee headaches, their tailored approach fits like a glove. Small businesses? Unlock group benefit rates usually reserved for corporate giants—without the red tape.
And for those in-between moments? Short-term insurance steps in as an ultra-affordable bridge, while life insurance ensures your loved ones are never left vulnerable.
Real Americans, Real Wins
Don’t just take our word for it. Thousands of freedom-loving families have already ditched the old system for America First. “Finally, insurance that aligns with our values and actually saves us money,” shares one client. Another raves, “Our small team got big-business perks without the hassle—it’s a game-changer.” These aren’t scripted lines; they’re the voices of patriots who’ve reclaimed control over their health destiny.
Your Move: Secure Your Shield Today
Why settle for less when you can demand better? America First Healthcare isn’t about profits—it’s about powering the American dream with reliable, value-driven protection. Plans are available year-round, no open-enrollment nonsense.
Ready to uncover the gaps in your current setup and lock in savings? Schedule your FREE healthcare review today at America First Healthcare. In under 15 minutes, their experts will map out options that fit your life, your budget, and your principles.
America First isn’t just healthcare—it’s a declaration of independence. Join the movement. Your family’s freedom starts now.
