Citigroup Cuts Copper Forecast on Tariffs Risk, China Outlook

Citigroup slashed its near-term outlook for copper prices, citing a number of factors, including the ongoing trade dispute between the United States and China.

The bank now expects copper prices to average $6,000 a tonne in the third quarter, down from its previous forecast of $6,500 a tonne. Citigroup also cut its fourth-quarter price forecast to $6,500 a tonne from $7,000 a tonne.

The bank's revised outlook is based on a number of factors, including:

* The ongoing trade dispute between the United States and China. The trade dispute has led to uncertainty in the global economy, which has weighed on demand for copper. * A slowdown in economic growth in China. China is the world's largest consumer of copper, and a slowdown in economic growth in the country would likely lead to a decrease in demand for copper. * A rise in the value of the US dollar. A stronger US dollar makes copper more expensive for buyers in other countries. Citigroup's revised outlook is in line with forecasts from other banks. Goldman Sachs recently cut its copper price forecast for the third quarter to $6,000 a tonne, citing the same factors as Citigroup. The decline in copper prices is a blow to the copper industry, which has been struggling in recent years. The industry has been hit by a number of factors, including the trade dispute between the United States and China, a slowdown in economic growth in China, and a rise in the value of the US dollar. The decline in copper prices is also likely to have a negative impact on the global economy. Copper is used in a wide variety of products, including electronics, construction, and transportation. A decline in copper prices could lead to higher prices for these products, which could slow economic growth.