Copper prices recorded their steepest drop in seven weeks Wednesday on concerns that a Chinese probe into the use of metals for obtaining loans would hurt demand.
Chinese authorities are investigating whether companies used the same copper, aluminum and iron ore held as stock in Qingdao as collateral for multiple loans, the Wall Street Journal reported.
On Thursday, June 5, the cash price of primary copper fell by 2.4 percent on the LME, landing at $6,835 per metric ton and making it the day’s biggest mover. The copper 3-month price weakened by 2.1 percent on the LME, settling at $6,778 per metric ton.
The price of US copper producer grade 122 fell 1.3 percent to $3.79 per pound. The price of US copper producer grade 110 saw a 1.3 percent decline to $3.79 per pound. The price of US copper producer grade 102 declined 1.2 percent to $3.98 per pound. The cash price of primary Japanese copper increased 0.7 percent to JPY 741,000 ($7,217) per metric ton.
Chinese copper prices were mixed for the day. Chinese copper wire finished the day down 0.2 percent to CNY 50,030 ($8,004) per metric ton. Chinese copper bar stayed flat at around CNY 50,900 ($8,143) per metric ton. The Chinese copper cash price showed little movement yesterday, hovering around CNY 51,100 ($8,175) per metric ton. The price of Chinese bright copper scrap held steady at CNY 44,300 ($7,087) per metric ton.