The monthly Copper MMI® registered a value of 92 in August, a decrease of 1.1 percent from 93 in July.
The Copper MMI® declined only slightly from a month ago on the back of falling prices, primarily within China for scrap, wire and the primary cash price.
The primary copper cash price within the Indian market also fell slightly. The LME 3-month copper price also took a small hit, dragging the Copper MMI® down one point.
Interestingly, the primary cash price for copper in Japan along with the copper strip price in Korea provided support to the overall complex.
“We view this dip as minor in the overall scheme of things and would encourage MetalMiner readers not to read too much into a one-point change from July’s reading of 92,” said Lisa Reisman, executive editor of MetalMiner.
“Copper often serves as the industrial metal bellwether, and though other MMI® data looks a bit more negative, copper remains fairly well-supported and at this point in time does not follow any particular negative-price-trend pattern,” Reisman concluded.
Drivers of the Copper Index Drop
After rising 1.7 percent the previous month, Chinese primary cash copper prices dropped 1.2 percent. After rising 2.4 percent the previous month, Chinese bright copper scrap prices dropped one percent. After rising 1.6 percent the previous month, Chinese copper wire prices dropped 1.1 percent.
Copper 3-month prices fell 0.8 percent on the LME to $7,525 per metric ton after rising 1.7 percent the previous month.
Meanwhile, the price of US copper producer grades 102 and 110 fell 1.7 percent.
Prices for Korean copper strip inched up 0.6 percent. The Japanese copper cash price improved over the month, rising 1.7 percent.
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.