Interesting past couple of days for copper! As reported by The Wall Street Journal, “Copper futures fell to their lowest level in almost two weeks on the London Metal Exchange Monday, weighed by concern over demand for the metal from top consumer China.”
“The LME’s flagship three-month copper contract fell 0.5% to $7,278.75 a metric ton in early trade, its lowest price since Dec. 24.”
“A weak batch of Chinese economic data last week rattled base metal investors, who took the data as a sign of weaker demand for industrial metals in the country. China is the world’s No. 1 copper consumer, accounting for around 40% of global demand for the metal.”
“‘Evidently, we are still seeing the after-effects of the Purchasing Managers’ Indices in China which were published last week and fell in December,’ said Commerzbank.”
“Base metal prices could find support in the days ahead from the annual reweighting of major commodity indices such as the Dow Jones-UBS Commodity Index and the Standard & Poor’s GSCI, however. The reweighting process leads investors and funds who track the indices to generally sell last year’s outperformers and buy underperformers to bring the composition of their portfolio back into line.”
“For base metals like copper, which fell 7.2% last year, this process ‘is likely to spark buying,’ said Commerzbank.”
In metal price news for copper…
US copper producer grade 122 price saw the largest upwards shift on the weekly Copper MMI®, rising 2.2 percent to settle. The price of US copper producer grade 110 shifted up 2.2 percent to close this week. Last week, the price of US copper producer grade 102 shifted slightly, rising by 2.1 percent to close. Korean copper strip remained unchanged for the week. The cash price of primary Japanese copper stayed essentially flat.
Prices for Chinese copper were up for the week. The price of Chinese bright copper scrap rose 1.7 percent after falling 4.2 percent during the previous week. Chinese copper wire prices ticked up 1.2 percent over the past week. In the past week, Chinese copper bar saw its price shift up 0.4 percent. The cash price of Chinese copper settled this week after shifting up 0.4 percent.
Closing out the third week of rising prices, the primary copper cash price increased by 1.6 percent on the LME, landing at $7,394 per metric ton. The copper 3-month price rose 1.4 percent on the LME this week, closing out the third week at $7,370 per metric ton.
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.