Despite falling LME copper prices, copper concentrate stocks have dropped due to several mine closures. Mining firms pay smelters to process copper concentrate. BHP has agreed to pay $.072 per pound to Japanese smelters, a rise of $.002 per pound from January’s price levels.
BHP might consider itself lucky with this 3 percent increase as more supply has come on stream (and hence more will go through processing).
The copper 3-month price experienced the biggest price decline of the day, dropping 2.3 percent on the LME to close at $7,150 per metric ton. The primary copper cash price weakened by 2.2 percent on the LME, settling at $7,120 per metric ton.
The price of US copper producer grade 122 declined 0.8 percent. The price of US copper producer grade 110 fell 0.8 percent. The price of US copper producer grade 102 saw a 0.7 percent decline. The cash price of primary Japanese copper fell 0.3 percent to the $7400 per metric ton range.
Chinese copper prices closed flat for the day. Chinese copper bar saw little change in its price yesterday. The Chinese copper cash price held steady in the $8900 per metric ton range. Chinese copper wire stayed flat. The price of Chinese bright copper scrap saw essentially no change for the fifth day in a row.