The fourth-largest producer of the metal in China doesn’t have enough copper scrap to keep producing.
Via Reuters this morning: Yunnan Copper Industry Company “shut a 100,000-tonne-a-year unit due to supply shortage of raw material scrap, an executive said on Tuesday.” The unit was shut down over the weekend, and the executive indicated that they may not reopen for the balance of 2013.
“Top producer Jiangxi Copper Company Ltd and smaller rivals have already cut production in the past month because of scrap supply shortage,” according to the article.”
So where do copper prices stand?
Current Copper Prices
Rising 3.3 percent to close at $7,329 per metric ton, the copper cash price experienced the biggest change on the LME for Monday, May 20. Following a two-day drop, the copper 3-month price increased by 3.2 percent on the LME to $7,350 per metric ton.
Following a 1.2 percent rise on Monday, the cash price of primary Japanese copper closed higher. The price of US copper producer grade 122 gained 0.8 percent. After a 0.7 percent increase, the price of US copper producer grade 102 finished the day higher as well.
Chinese copper prices were mixed for the day. The price of Chinese copper bar finished the market day up 0.8 percent per metric ton. The Chinese copper cash price inched up 0.8 percent. Chinese copper wire gained 0.5 percent. The price of Chinese bright copper scrap showed little movement on Monday.