Decreasing 3.9 percent made Chinese copper bar the biggest mover of the day on the MetalMiner IndX on Wednesday. After falling 3.9 percent , the cash price of Chinese copper also reached a new 30-day low. After hitting a 30-day low of its own on Monday, March 10, the price of Chinese copper wire rose 0.5 percent yesterday. The price of Chinese bright copper scrap held steady.
The state of the Chinese economy continues to be a concern as it is the largest consumer of copper in the world and government spending there impacts billions in construction projects throughout the world’s largest economy. Reuters reported that China’s central bank is prepared to loosen monetary policy if economic growth slows further by cutting the amount of cash that banks must keep as reserves. This was a positive sign for markets, but also a possible indication of Beijing’s growing nervousness.
In domestic copper, the price of US copper producer grade 122 declined 2.1 percent. The price of US copper producer grade 110 fell 2.1 percent. The price of US copper producer grade 102 declined 2.0 percent.
The Japanese copper cash price fell 1.9 percent.
A $227.00 decline in the copper 3-month price on the LME left the price at $6,688 per metric ton. At $6,720 per metric ton, the primary copper cash price on the LME was down 3.0 percent from the previous market day.