Goldman Sachs Still Bearish on Copper, Prices Down

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In a report out this week, Goldman Sachs expressed bearish views on copper prices in the next six to twelve months, attributing factors such as a softer Chinese property market to curb demand. The bank estimates that as much as 61 percent of Chinese and 25 percent of global copper consumption is related to the Chinese housing and property market activity, Fast Markets reported.

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With data pointing to high and rising Chinese property inventories, weak property prices and declining new starts, analysts from GS foresee a bearish demand picture for copper for the next six months.

“This has bearish medium-term implications for late-cycle copper-intensive construction completions, as well as near-term demand for copper from consumer appliances,” said the report.

Decreasing 1.2 percent made Chinese copper bar the biggest mover of the day, finishing at CNY 51,230 ($8,258) per metric ton on Thursday, July 17. After falling for two days, the cash price of Chinese copper rose 0.7 percent to CNY 52,430 ($8,452) per metric ton. Chinese copper wire saw little change in its price on Thursday at CNY 50,790 ($8,187) per metric ton. The price of Chinese bright copper scrap continues hovering around CNY 44,300 ($7,141) per metric ton for the fifth day in a row.

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The price of US copper producer grade 122 declined 0.8 percent to $3.90 per pound. The price of US copper producer grade 110 saw a 0.8 percent decline to $3.90 per pound. The price of US copper producer grade 102 fell 0.7 percent to $4.09 per pound. The cash price of primary Japanese copper flattened at JPY 755,000 ($7,428) following two-days of declines.

On the LME, the 3-month price of copper gained 0.2 percent to finish at $7,121 per metric ton. Also on the LME, the primary copper cash price rose 0.1 percent to $7,111 per metric ton.

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