The price of copper for delivery in December dropped 0.3% on the Comex market in New York early Monday, reaching $3.57 per pound ($7,854 per tonne).

[Click here for an interactive chart of copper prices]

Last week, LME-tracked stockpiles of copper surged to their highest level since October 2021.

The copper market has entered a state of contango, where spot prices trade at discounts to futures, signaling weak consumer demand.

According to a metals trader interviewed by Reuters, the decline in copper prices is attributed to factors such as the China property market and demand, as well as the escalating conflict in the Middle East.

The recent Israel-Hamas war, combined with intensifying clashes on Israel’s border with Lebanon, has raised concerns about the potential for a wider Middle East conflict, increasing pressure on copper.

Furthermore, the surge in interest rates and ongoing uncertainty regarding Federal Reserve policies have propelled the dollar higher, making raw materials more expensive for buyers using other currencies.

(With files from Reuters and Bloomberg)