LME London copper fell to a new low in more than two months

After a 26% increase in 2020, copper prices are up about 19.
2%
this year.
Many analysts expect demand for copper to increase as the world shifts from fossil fuels to
electrification.
However, since hitting an all-time high of $10,747.
5 on May 10, copper prices have little momentum to rise, continuing to move sideways in the range of $9,000 to $10,000 as China's economic growth slows and the Federal Reserve is about to scale back monetary stimulus
.
Weakness in China's real estate sector has also raised concerns about the outlook
for China's metals demand.

Data from China on Wednesday suggest that the copper demand backdrop is unlikely to improve, at least in the short term
.
Copper prices will remain high due to tight supplies
.
China's factory output grew faster than expected in November, but investment growth slowed and the real estate market remained sluggish
.
In addition, due to the recent outbreak of the epidemic in Zhejiang Province, more than a dozen local listed companies issued announcements saying that the company has suspended production
in the epidemic area due to the impact of epidemic-related prevention and control measures.
However, the Chinese government has said it will focus on stabilizing economic growth, and the central bank pumped money
into the financial system on Wednesday.

After the LME closed on Wednesday, the Fed said it would end its $120 billion monthly bond purchases in March and would start raising interest rates
.
This will mean an end
to the ultra-loose monetary policy implemented during the pandemic.

Other news included that a major copper mine could face a shutdown, alerting investors to the risk of supply disruptions at the mine
.
On Tuesday, the Las Bambas copper mine in Peru failed to hold meetings
with local community leaders.
Protesters in the neighborhood have been blocking a road
used to transport supplies and copper.
If no agreement can be reached, the Las Bambas copper mine may cease production
.