Copper prices have recorded their steepest drop in seven weeks on concerns that a Chinese probe into the use of metal for obtaining loans would hurt demand, according to Dow Jones Newswires.
Chinese authorities are investigating whether companies used the same copper, aluminum and iron ore stocks held in Qingdao as collateral for multiple loans, several news organizations have reported. The northeastern port city halted some shipments of aluminum and copper last week.
Standard Bank is holding its own investigation into potential irregularities at the port, and is also cooperating with authorities, the bank said in a statement.
US copper producer grade 110 price saw the biggest decline of the day, dropping 0.8 percent to close at $3.84 per pound on Wednesday, June 4. The price of US copper producer grade 122 saw a 0.8 percent decline to $3.84 per pound. The price of US copper producer grade 102 declined 0.7 percent to $4.03 per pound. After dropping for two days, the cash price of primary Japanese copper flattened at JPY 736,000 ($7,176).
Chinese copper closed mixed on Wednesday. Chinese copper bar ended the day at CNY 50,900 ($8,138) per metric ton, after the 0.1 percent drop on Wednesday. The cash price of Chinese copper weakened by 0.1 percent, settling at CNY 51,100 ($8,170) per metric ton. Chinese copper wire saw little change in its price yesterday at CNY 50,150 ($8,018) per metric ton. The price of Chinese bright copper scrap continues hovering around CNY 44,300 ($7,083) per metric ton for the fifth day in a row.
The 3-month price of copper saw little movement yesterday on the LME, closing out around $6,922 per metric ton. The cash price of primary copper showed little movement yesterday on the LME at $7,003 per metric ton.