As copper had an uncharacteristic strong week on the MMI, some analysts are pointing to a possible strong second half for the beleaguered red metal. Seeking Alpha points out that LME warehouse supplies of copper are at their lowest level since 2008, China has made a vocal pledge to revise its financial markets and Federal Reserve Chief Janet Yellen has hinted towards US economic growth acceleration this year, which could help drive copper futures price higher.
The week’s biggest mover on the weekly Copper MMI® was the Japanese copper cash price, which saw a 4.1 percent increase to JPY 738,000 ($7,271) per metric ton. Last week marked the fourth in a row of rising prices for the metal. The price of US copper producer grade 122 rose 2.1 percent over the past week to $3.86 per pound. Last week, the price of US copper producer grade 110 increased by a slight 2.1 percent to $3.86 per pound. Last week, the price of US copper producer grade 102 shifted slightly, rising by 2.0 percent to close at $4.05 per pound. Korean copper strip traded sideways last week, hovering around KRW 9,640 ($9.37) per kilogram.
Chinese copper prices were mixed for the week. The price of Chinese copper wire rose 3.3 percent to CNY 50,580 ($8,118) per metric ton after falling 1.7 percent during the previous week. The price of Chinese copper bar rose 2.3 percent to CNY 51,400 ($8,250) per metric ton after falling 0.8 percent during the previous week. The Chinese copper cash price rose 2.3 percent to CNY 51,600 ($8,282) per metric ton after falling 0.8 percent during the previous week. Chinese bright copper scrap prices held steady from the previous week at CNY 44,300 ($7,110) per metric ton.
The primary copper cash price rose 3.9 percent on the LME over the past week to $6,949 per metric ton. This was the third week in a row of increasing prices. At $6,886 per metric ton, the 3-month price of copper finished the week 3.4 percent higher on the LME.
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.