Copper was battered last week by an investigation into Chinese companies selling the same copper and other metals to banks who used it as collateral for bank loans to high-risk customers. The investigation threatens to disrupt China’s entire economy, depending on how widespread the problem is.
Editor-At-Large Stuart Burns wrote a great explanation of China’s complex commodities trade-financing methods and why you should care about it.
The week’s biggest mover on the weekly Copper MMI® was the price of Chinese copper wire, which saw a 2.7 percent decline to CNY 48,650 ($7,823) per metric ton. This comes on the heels of a 0.6 percent increase the week before. Following a 0.7 percent increase in the week prior, the price of Chinese copper bar fell 1.8 percent last week to CNY 50,000 ($8,040) per metric ton. The Chinese copper cash price fell 1.8 percent to CNY 50,200 ($8,073) per metric ton after rising 0.6 percent the week before. Following a steady week, prices for Chinese bright copper scrap closed flat at CNY 44,300 ($7,124) per metric ton.
The price of US copper producer grade 122 saw a 2.1 percent drop this week, closing at $3.71 per pound. The price of US copper producer grade 110 declined to $3.71 per pound after drifting 2.1 percent since last week. The price of US copper producer grade 102 closed last week at $3.90 per pound, after a 2.0 percent drop. With a 1.8 percent decrease, the Japanese copper cash price closed the week at JPY 718,000 ($7,059) per metric ton. Korean copper strip traded sideways last week, hovering around KRW 9,640 ($9.48) per kilogram.
The copper 3-month price fell 1.5 percent last week on the LME, settling at $6,669 per metric ton. Following a 1.1 percent drop on the LME, the primary copper cash price finished the week at $6,725 per metric ton.
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.