Copper pauses as IMF says Chinese growth would be constrained by weak domestic activity

COMEX Copper futures are pausing after recent rally as International Monetary Fund (IMF) has lowered its global economic growth forecast, including for China, due to shocks from the US-Israeli war in Iran. The International Monetary Fund on Tuesday projected China's economy to expand by 4.4 percent in 2026. The 2026 figure for China is higher than the October 2025 forecast, though slightly lower than the update in January. Chinese growth would be constrained by weak domestic activity – especially in the housing sector.

IMF has also lowered its global economic growth forecasts for 2026 to 3.1 percent in the World Economic Outlook (WEO) report published on Tuesday, while keeping its projection for 2027 at 3.2 percent. This marks a deceleration from the estimated 3.4 percent growth achieved in 2025. Before the outbreak of the Middle East conflict, the forecasts for global growth would have been 3.4 percent in 2026 and 3.2 percent in 2027.

COMEX Copper futures hit near six-week high after a break above $6 per pound this week but are pausing now. The metal is down marginally at $6.08 per pound.

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