Caterpillar's Layoffs Parallel A Falling Monthly Copper Price Index

by MetalMiner IndX Reports on November 7, 2012

Style:    Category: Metal Prices, MetalMiner IndX, Non-ferrous Metals

MetalMiner Copper Price Index Nov 2012 chart

today's copper prices - MetalMiner IndXAs a gift to you, our readers, for MetalMiner’s 5th Birthday, we’re offering free current prices for copper forms in this report! Click here to get them, or click on the purple arrow!

The considerable decrease of 3-month LME copper prices led the monthly MetalMiner copper price complex down 4 points to a value of 96 — a 4 percent drop — after October numbers reached 100, the Jan. 1, 2012, baseline. Copper prices have slipped across the board, with the exception of Korean copper strip which rose by more than 5 percent.

“When we see companies like Caterpillar Inc. lay off workers, we know copper may have moved into rough waters from a pricing perspective,” said Lisa Reisman, managing editor of MetalMiner. “Caterpillar serves as a bellwether for the economy because mining leads the manufacturing sector…layoffs suggest to us that Caterpillar feels copper has moved into bearish country.”

Stuart Burns recently reported on an HSBC copper analysis, stating the bank sees some price weakness from now into 2013. That post also discussed a copper floor at $6,500 to $7,500 per ton.

Price Drivers of the Copper Index Drop

A 5.1 percent drop on the LME left the 3-month price of copper at $7,823 per metric ton. Prices for US copper producer grades 102, 110 and 122 all closed the month down around 5 percent.

Chinese bright copper scrap prices fell 4.3 percent after rising 7.9 percent the previous month. After rising 4.6 percent the previous month, Chinese copper wire prices dropped 3.7 percent. A 3.6 percent decline befell the cash price of Chinese copper.

The Japanese copper cash price dropped 2.4 percent for the month.

Korean copper strip prices, however, increased 2.5 percent.

today's copper prices - MetalMiner IndXAs a gift to you, our readers, for MetalMiner’s 5th Birthday, we’re offering free current prices for copper forms in this report! Click here to get them, or click on the purple arrow!

The Copper MMI® collects and weights 12 global copper metal price points to provide a unique view into copper price trends over a 30-day period. For more information on the Copper MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: