Since copper’s such an economic bellwether, could this be a good sign?
According to the International Copper Study Group (ICSG), the global copper market in May slipped to its first deficit after seven consecutive months of surplus to show a 17,000-tonne shortfall, as demand rose in China and the United States, as reported by Reuters. The group “said apparent refined demand from top consumer China in May was at its highest level since December 2011, while usage in the United States was at its highest since March 2012, outpacing a steady rise in global refined production.”
Greater demand for copper in the US; good news for economic recovery, then? We’ll have to wait and see.
On our daily price index, dropping 1.2 percent, the cash price of Japanese copper was the biggest mover on Wednesday, August 21.
The prices of US copper producer grades 102, 110 and 122 showed little movement on Wednesday.
Chinese copper prices were mixed for the day. Chinese copper bar closed 0.2 percent lower. The Chinese copper cash price fell 0.2 percent. Chinese copper wire finished the day down 0.2 percent. The price of Chinese bright copper scrap remained essentially flat.
On the LME, the cash price of primary copper declined 0.3 percent to $7,265 per metric ton. The copper 3-month price held steady yesterday on the LME, remaining around $7,300 per metric ton.