The week’s biggest mover on the weekly Copper MMI® was the price of Chinese copper bar, which saw a 9.5 percent decline. This week marked the third in a row of declining prices for the metal. For the third week in a row, the Chinese copper cash price dropped, falling 9.4 percent. The price of Chinese copper wire finished the week down 9.4 percent. Chinese bright copper scrap remained essentially flat from the previous week.
As MetalMiner has previously reported, the freefall in the price of copper is tied heavily to the Chinese economy and how banks in China are stockpiling the metal as loan collateral, but other factors have caused copper’s losses to continue this week. Russia-Ukrainian tensions, sluggish Japanese data, mixed US data, muted steel demand in China to the overall slide of industrial commodities, have pushed copper it into bear market territory, commodity broker Motilal Oswal said in its commodity insight report.
China, this week, also allowed a small solar firm to go into default, signaling that Beijing is ready to let more companies fail as part of its economic reforms, shaking financial markets that are used to the government bailing out firms. The complex mass of economic forces putting price pressure onto copper is unlikely to untangle quickly.
The actual prices: The price of US copper producer grade 122 fell 7.1 percent after rising 0.3 percent the week before. Following a 0.3 percent increase in the week prior, the price of US copper producer grade 110 fell 7.1 percent last week. The Japanese copper cash price fell 7.0 percent over the past week. This was the fourth week in a row of declining prices. The price of US copper producer grade 102 fell 6.7 percent after rising 0.2 percent the week before. Korean copper strip remained unchanged for the week.
The copper 3-month price dropped 8.2 percent on the LME this week, closing out the third consecutive week of falling prices at $6,460 per metric ton. The cash price of primary copper fell 7.9 percent on the LME over the past week to $6,495 per metric ton. This was the third week in a row of declining prices.
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.