Chinese copper demand appears to be suffering, and the effect on Chinese prices is evident — even if only by a rather small margin.
The FT’s Jack Farchy notes that a trifecta of factors in China is hitting the global copper market: “the country’s imports of the red metal tumbled 22 percent in October to their lowest in more than a year”; copper stocks are at a record high, with inventories rising by roughly 135,000 metric tons in October, putting overall Shanghai inventories near 1 million tons, according to traders; and Chinese smelters have incongruously been producing more, with October output at 520,000 tons, up 10.7 percent from a year ago.
Which left Chinese copper prices mixed for the week on the MetalMiner IndX℠.
The price of Chinese copper wire finished the week down 0.2 percent. The price of Chinese copper bar fell 0.2 percent over the past week as well, the third week in a row of declining prices. Also closing out the third week of declining prices, the cash price of Chinese copper dropped by 0.2 percent. Chinese bright copper scrap remained unchanged for the week.
The 3-month price of copper saw the biggest increase on the weekly Copper MMI® this week, rising 1.7 percent on the LME and settling at $7,735 per metric ton. Also on the LME, a 1.3 percent gain landed the cash price of primary copper at $7,716 per metric ton.
The price of US copper producer grades 102, 110 and 122 rose 1.2 percent after falling 0.2 percent during the previous week.
The Copper MMI® collects and weights 12 global copper metal price points to provide a unique view into copper price trends. 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.