With the exception of copper price points from Korea, every other country reported higher copper prices. From US copper producer prices to the LME to China copper wire, prices increased, moving the copper price index up by two points to 91.
In a recent MetalMiner piece, Stuart Burns speculated that the China State Reserve Bureau (SRB) has just come into the market to buy nickel, and some believe the SRB may wish to buy copper next. This of course would likely lead to higher copper prices, though based on this month’s copper price increases, we don’t presume to know for sure whether or even if the SRB will buy.
The market fundamentals do not support higher copper prices, but then again, as Stuart says, fundamentals haven’t played a large role in pricing anyway.
How much did copper prices rise?
Primary Price Drivers
The monthly Copper MMI® registered a value of 91 in June, an increase of 2.2 percent from 89 in May.
After dropping the previous month, the price of Chinese bright copper scrap rose 7.0 percent. For the second month in a row, the Japanese copper cash price increased, rising 3.3 percent over the past month. The price of US copper producer grade 110 rose 2.6 percent after falling the previous month. After dropping the previous month, the price of Chinese copper wire prices rose 2.6 percent.
The copper 3-month price rose 2.5 percent on the LME to $7,285 per metric ton after falling the previous month. After dropping the previous month, the price of US copper producer grade 102 prices rose 2.5 percent. The primary copper cash price rose 2.4 percent on the LME to $7,245 per metric ton after falling the previous month. After dropping the previous month, the cash price of Chinese copper prices rose 1.9 percent.
Meanwhile, Korean copper strip did not budge the entire month.
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.