Chinese copper companies are expecting copper to continue riding higher.
“Declined ore grades of copper, escalating costs of labor, fuel, power, as well as sharp increase in capital expenditures required for new projects will result in new copper projects entering the top end of the cost curve resulting in a steeper gradient of the cost curve,” Chinalco Mining said, as reported by Shanghai Metals Market.
“Thus, it is expected that copper prices will receive marginal cost support and therefore downside to marginal cost will be limited,” the company added in the statement.
The biggest mover on MetalMiner’s weekly Copper MMI® was the Japanese copper cash price, which saw a 5.5 percent increase.
The price of US copper producer grade 122 ticked up 1.5 percent over the past week, as did the prices of US copper producer grades 110 and 102. Prices for Korean copper strip remained constant.
Chinese copper prices were mixed for the week. Chinese copper bar gained a slight 2.7 percent this past week. The Chinese copper cash price shifted up 2.7 percent also. Not to be left out, Chinese copper wire rose 2.7 percent over the past week. Chinese bright copper scrap traded sideways last week.
The cash price of primary copper rose 1.5 percent on the LME over the past week to $7,225 per metric ton. The 3-month price of copper shifted up 1.3 percent on the LME to close at $7,248 per metric ton this week.
The Copper MMI® collects and weights 12 global copper metal price points to provide a unique view into copper price trends. 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.