Copper plummeted to its lowest level in 20 months as fears of a worldwide recession grew, hurting demand forecasts for the metal, which has a wide range of applications.
Copper, which is traded on the London Metal Exchange, has lost more than 25% this year and is on track for its worst weekly yearly decrease since 2008 when the financial crisis was at its peak.
Goldman Sachs forecast down 22% from previous forecast
This week, Goldman Sachs Group Corp. forecasted that copper would trade at $6,700/t over the next three months, a 22 percent decrease from their previous projection, citing the rising US currency as a drag for copper until macro worries recede.
The drop is part of a larger drop in industrial metals. An index of six metals traded on the London Metal Exchange, comprising aluminum copper, zinc, nickel, tin, and lead, is down 23% this year, while benchmark US steel prices are down more than 36% and iron ore is down 19%.