Copper prices fell for the third straight day on Wednesday as tensions between the U.S. and China flared as House Speaker Nancy Pelosi wrapped up her visit to Taiwan, an island that China claims as its own territory. China serves as one of the world’s biggest metals consumers. While rising geopolitical tensions look to be an unlikely catalyst of a further selloff in copper, investors in base metals used in construction projects still worry a slowdown in global economic growth will dampen demand.
“Its recent drop has added to wider concerns about a possible global recession,” said Boris Ivanov, global commodities expert and founder at Emiral Resources on Wednesday. “The lackluster economic growth in Europe, US and China and deteriorating macroeconomic backdrop will damp demand for metals like copper, and its market performance will depend on how rate rises and fiscal stimulus measures pan out.” Three-month copper on the London Metal Exchange fell 1.4% to $7806.50 a ton on Wednesday, booking a third straight day of losses, according to Dow Jones Market Data. While on the New York Mercantile Exchange, copper contracts for September delivery
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lost 5 cents, or 1.4%, finishing at $3.52 per pound. In Asia, the most-traded September copper contract declined 1.2% to $8,776.39 a ton. U.S. House of Rep. Speaker Nancy Pelosi arrived in Taiwan on Tuesday on a trip she said “honors America’s unwavering commitment to supporting Taiwan’s vibrant democracy” but also didn’t contradict China’s claims over the self-ruled island …