Copper futures decline as Chinese data, Fed expectations weigh on demand.

July Copper futures fell significantly, dropping over 8.25% from high to low across recent sessions. The downward pressure is largely driven by weak economic data out of China, where retail sales, industrial production, and fixed asset investment all missed expectations. As the world's largest consumer of copper, this data signals a broader manufacturing slowdown in Asia exacerbated by ongoing energy price shocks. Additionally, elevated energy prices stemming from the Strait of Hormuz closure are fueling global inflation, shifting CME FedWatch Tool probabilities toward a December rate hike and a higher-for-longer rate environment that typically suppresses industrial metal demand.