Reuters reported today that China’s state stockpiler, the State Reserves Bureau, bought at least 200,000 tons of imported copper stored in bonded warehouses after global copper prices dived to multiyear lows in March. Four sources with knowledge of the matter said to Reuters.
Further purchases by the SRB could help absorb the small surplus forecast to weigh on the global refined copper market this year and help support prices that have already dropped nearly 10 percent so far this year. The SRB bought around 200,000 tonnes bonded stocks between March and April and will move all the stocks to state warehouses by the end of June, two sources told Reuters.
With a 0.3 percent increase over the past day, the price of US copper producer grade 110 was the biggest mover, closing at $3.77 per pound on Wednesday, April 23. The price of US copper producer grade 122 rose 0.3 percent to $3.77 per pound. At $3.96, the price of US copper producer grade 102 finished the market day up 0.3 percent per pound. The cash price of primary Japanese copper held steady around JPY 711,000 ($6,928) per metric ton.
Chinese copper prices were mixed for the day. After a 0.2 percent increase, Chinese copper wire finished the day at CNY 48,250 ($7,736) per metric ton. The price of Chinese copper bar remained steady at CNY 49,080 ($7,869) per metric ton. The cash price of Chinese copper held steady on Wednesday, remaining around CNY 49,280 ($7,901) per metric ton. For the fifth consecutive day, the price of Chinese bright copper scrap held flat at CNY 44,300 ($7,102) per metric ton.
The 3-month price of copper fell 0.2 percent to $6,620 per metric ton yesterday on the LME after two days of no change. Also on the LME, the cash price of primary copper held steady around $6,628 per metric ton.