Copper is mounting a comeback as investors grow more confident about the global economy.
Prices rose 3.3% last week, after a major commodities trading house surprised markets with an upbeat forecast for copper demand in the second half of this year, while data from the US home buying and construction markets show an economic rebound is gaining traction. Some investors also believe China, the world’s largest consumer of the metal, may be preparing to launch a second round of economic stimulus, which could further boost copper demand, according to the Wall Street Journal.
The Japanese copper cash price saw the biggest increase at 2.7 percent, finishing at JPY 762,000 ($7,337) per metric ton for Friday, August 22. The price of US copper producer grade 110 remained essentially flat at $3.88 per pound. The price of US copper producer grade 102 held steady around $4.07 per pound. The price of US copper producer grade 122 showed little movement last Friday, hovering around $3.88 per pound.
Chinese copper prices were mixed for the day. At CNY 52,230 ($8,489), the price of Chinese copper bar finished the market day up 1.1 percent per metric ton. At CNY 52,430 ($8,522), the cash price of Chinese copper finished the market day up 1.1 percent per metric ton. For the fifth day in a row, the price of Chinese copper wire remained essentially flat at CNY 50,395 ($8,191) per metric ton. The price of Chinese bright copper scrap held steady at CNY 44,300 ($7,200) per metric ton.
On the LME, the primary copper cash price inched up 1.2 percent to $7,003 per metric ton. Also on the LME, the 3-month price of copper rose 1.2 percent to $6,985 per metric ton.