Like its cousin in the base metals sector, aluminum, the Copper MMI® increased by one point from 85 to 86, but the index still remains near its historic low.
“Copper prices improved across the board in terms of the elements that comprise this monthly copper price index,” said Lisa Reisman, managing editor of MetalMiner, “and though many remain bearish about copper, some new evidence suggests that China, which accounts for 40% of global copper demand, will see some increases in demand, notably for power grid spending.”
Copper inventories in China have dropped while stocks at Shanghai Futures Exchange warehouses have also dropped. Whether an uptick in Chinese demand will lift global copper markets remains unclear, but some perceive copper may have hit its floor. Based on the MetalMiner MMI series, we might concur. At a minimum, we’d conclude no firm trend has appeared for copper.
After dropping the previous month, the price of Chinese bright copper scrap prices rose 5.7 percent. The cash price of Chinese copper rose 3.0 percent after falling the previous month. The price of Chinese copper wire increased 2.7 percent.
After dropping the previous month, the price of US copper producer grade 110 prices rose 1.6 percent. The price of US copper producer grade 102 rose 1.5 percent after falling the previous month. After dropping the previous month, the primary copper cash price prices rose 0.7 percent on the LME to $6,800 per metric ton. The copper 3-month price rose 0.5 percent on the LME to $6,809 per metric ton after falling the previous month.
The Japanese copper cash price saw a small increase this month, as did Korean copper strip.
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.