Weekly Copper Down on Oversupply Concerns, Chinese Economy

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Chinese economic data caused a price drag for already-battered copper price last week. Forbes reported that trade figures released by China’s Customs Department on Saturday showed that Chinese exports slumped by 18.1% in February, when the market was expecting an increase of around 7.5%.

It was not all a bad week for the red metal, however, as copper increased in price, overall, on the LME and that eased concerns of stockpiled oversupply of copper, as no one really knows how much of the metal is being stored as investment collateral in Shanghai warehouses.

The week’s biggest mover on the weekly Copper MMI® was the Japanese copper cash price, which saw a 2.5 percent decline to JPY 704,000 ($6,943) per metric ton. This comes on the heels of a 4.5 percent increase the week before. The price of US copper producer grade 122 rose 0.5 percent over the past week to $3.76 per pound. This was the third week in a row of increasing prices. Closing out the third week of rising prices, the price of US copper producer grade 110 increased by 0.5 percent, landing at $3.76 per pound. At $3.95 per pound, the price of US copper producer grade 102 finished the week 0.5 percent higher. Prices for Korean copper strip remained constant, closing the week at KRW 9,640 ($9.12) per kilogram.

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Chinese copper prices were mixed for the week. The price of Chinese copper wire rose 0.3 percent over the past week to CNY 47,430 ($7,634) per metric ton. This was the third week in a row of increasing prices. The price of Chinese copper bar rose 0.1 percent this week, closing out the third week at CNY 48,280 ($7,771) per metric ton. At CNY 48,480 ($7,803) per metric ton, the Chinese copper cash price finished the week 0.1 percent higher. Chinese bright copper scrap traded sideways last week, hovering around CNY 44,300 ($7,130) per metric ton.

Closing out the third week of rising prices, the primary copper cash price increased by 0.5 percent on the LME, landing at $6,637 per metric ton. The copper 3-month price rose 0.2 percent on the LME over the past week to $6,626 per metric ton. This was the third week in a row of increasing prices.

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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.

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