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Copper prices fell to a two-week low on Tuesday, weighed down by a stronger United States dollar and growing concerns over global economic stability, according to the latest market update from Absa Bank Zambia.
The decline reflected heightened investor caution amid fears of slowing global growth, persistent inflation pressures and ongoing uncertainty linked to the conflict in the Middle East.
Read more: Zambian Kwacha firms slightly on copper price rebound, risks persist
According to the update, benchmark three-month copper on the London Metal Exchange dropped by 1.3 percent to US$13,042 per metric tonne by 16:00 GMT. During the session, the metal touched a low of US$12,937.50, its weakest level since April 13.
The downturn in copper prices comes as Zambia’s financial markets prepare to reopen on Wednesday following Kenneth Kaunda Day, which subdued trading activity earlier in the week.
Meanwhile, the Zambian Kwacha weakened during Monday’s trading session, pressured by increased demand for foreign currency against limited inflows. At market opening, the currency traded at K18.800/18.850 before depreciating by 20 ngwee to close at K19.000/19.050.
Absa Bank Zambia noted that the Kwacha’s performance was influenced by market forces, with demand from importers and other market participants outweighing available supply.
Despite the depreciation, the bank projected that the local unit could stabilise in the coming days, driven by prevailing supply and demand dynamics.
Data from Bloomberg showed that the Kwacha weakened for a second consecutive session, falling by approximately 0.51 percent to close just above the K19.000 mark against the US dollar.
The decline was attributed to thin trading conditions and tightened liquidity during the holiday period.
Analysts said global commodity market pressures—combined with domestic currency movements—continue to shape Zambia’s economic outlook, particularly given the country’s heavy dependence on copper exports.
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