Metals Rout Deepens as China Lockdowns Add to Growth Fears

  • Chengdu to lock down 21 million residents to contain virus
  • Demand concerns outweighing continued supply-side disruption
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Base metals slumped, with copper falling further after capping its fifth consecutive monthly loss -- the longest downward streak since the 2008 financial crisis -- after China’s lockdown of megacity Chengdu added to demand woes.

A wave of risk aversion hit markets on Thursday, dragging copper down to near a one-month low. The Chinese metropolis of Chengdu will lock down its 21 million residents to contain a Covid-19 outbreak. The capital of Sichuan will be the biggest city to be shut down since Shanghai’s bruising two-month lockdown earlier this year.