Another bad week for copper was prompted by news that China is investigating several companies for selling the same copper to multiple buyer banks to use as loan collateral.
China’s shadow banking system has caused copper supply disruptions in the past so any reform of the system is a long-term good thing for metals buyers, but it could conceivably destroy any hope of a copper comeback in the short term. As usual, we wait and see.
The week’s biggest mover on the weekly Copper MMI® was the copper cash price, which saw a 3.3 percent decline on the LME to $6,800 per metric ton. This comes on the heels of a 1.2 percent increase the week before. Following a 1.0 percent increase in the week prior, the 3-month price of copper fell 2.4 percent on the LME last week to $6,770 per metric ton.
Chinese copper prices were mixed for the week. The price of Chinese copper bar rose 0.7 percent to CNY 50,900 ($8,168) per metric ton after falling 0.5 percent during the previous week. The cash price of Chinese copper rose 0.6 percent to CNY 51,100 ($8,200) per metric ton after falling 0.5 percent during the previous week. The price of Chinese copper wire rose 0.6 percent to CNY 50,025 ($8,028) per metric ton after falling 0.4 percent during the previous week. At CNY 44,300 ($7,109) per metric ton, the price of Chinese bright copper scrap did not change since the previous week.
The cash price of primary Japanese copper fell 1.9 percent to JPY 731,000 ($7,137) per metric ton after rising 2.5 percent the week before. The price of US copper producer grade 122 fell 1.6 percent last week, settling at $3.79 per pound. Following a 1.6 percent drop, the price of US copper producer grade 110 finished the week at $3.79 per pound. The price of US copper producer grade 102 closed last week at $3.98 per pound, after a 1.5 percent drop. At KRW 9,640 ($9.44) per kilogram, the week finished with no movement for Korean copper strip.
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.