But nonetheless, copper cash prices continued to drift downwards.
Copper prices continue to decline due to slower than expected growth in China and fears of quantitative easing, while other indicators suggest that copper could receive some price support.
Freeport-McMoRan Copper & Gold declared force majeure on an opération in Indonesia due to two accidents in which 29 people died in May. The mine is the second largest in the world.
BHP Billiton’s deal with Chinese smelters involving treatment and refining charges suggests that miners have more leverage in negotiations due to tighter supplies. In addition, Chinese copper stocks have declined.
All of this suggests we ought to see copper prices stabilize at a minimum.
In Tuesday’s closing, the cash price of primary copper fell by 1.2 percent on the LME, landing at $7,035 per metric ton and making it the day’s biggest mover. Also on the LME, the 3-month price of copper declined 1.1 percent to $7,070 per metric ton.
The price of US copper producer grade 122 fell 1.0 percent. The price of US copper producer grade 110 weakened by 1.0 percent. The price of US copper producer grade 102 saw a 1.0 percent decline. The cash price of primary Japanese copper flattened after two days of downward movement.
Chinese copper prices closed flat for the day. The price of Chinese copper bar showed little movement yesterday. The Chinese copper cash price held steady yesterday. The price of Chinese copper wire held steady. For the fifth day in a row, the price of Chinese bright copper scrap remained essentially flat.