Copper futures have fallen for the first time in more than half a decade, falling below US$2 per pound.
This is a reversal for the metal, which was predicted to experience a revival in 2016.
Speaking to ANZ senior commodities strategist, Daniel Hynes, he told Australian Mining the outlook for base metals into next year is positive.
“The outlook is better…the oversupply is not as bad as the bulk markets [such as iron ore],” he said.
Instead the price has reached its lowest point since 2004, as the Bloomberg Metals Subindex fell by nearly a third, its worst loss since 2008.
Copper futures for March delivery fell 4.3 per cent to US$1.9985 per pound, according to Bloomberg.
“Western markets have been absolutely smacked around as well because of the problems in China,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, told Bloomberg.
The current Chinese market implosion “is being interpreted as poor Chinese economic performance. Many are saying it could be a lot worse than recent data suggest”.
“That means poor demand for everything from copper to zinc to aluminium to oil.”