The U.S. copper fabricator Southwire Co has decided to drop its “legal fight against physical copper funds planned by Wall Street banks, as political and regulatory scrutiny make it unlikely the exchange-traded funds will ever be launched, according to a court filing on Monday,” reports Reuters.
“Southwire filed the lawsuit eight months ago after JPMorgan Chase & Co and BlackRock Inc got approval from the U.S. Securities and Exchange Commission for the first U.S. funds that would use copper as collateral against shares.”
“The prospect of the copper ETFs had spooked industrial users who worried the funds would hoard a vast stockpile of metal off the market, starving them of raw material and driving up prices.”
On Monday, October 28, the day’s biggest mover was the price of Chinese bright copper scrap, which saw a 0.8 percent decline. The price of Chinese copper bar steadied following two-days of dropping prices. After dropping for two days, the Chinese copper cash price flattened. The price of Chinese copper wire flattened following two-days of declines.
The cash price of primary Japanese copper declined 0.1 percent. The price of US copper producer grade 122 saw little change in its price on Monday. The price of US copper producer grade 102 showed little movement on Monday. The price of US copper producer grade 110 held steady yesterday.
The copper 3-month price saw a 0.5 percent decline on the LME to $7,134 per metric ton. Also on the LME, the primary copper cash price fell 0.5 percent to $7,126 per metric ton.