Shanghai Metals Market (SMM) reported today that based on their survey of 21 Chinese copper producers, 29% of them are “bearish that copper prices will fall.” We take that to mean primary copper prices.
Reportedly, “banks are tightening lending to copper financing business, boding ill for copper prices. Moreover, demand during this year’s September-October boom season will be weaker than expected and no massive stimulus measures are expected.”
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That short-term outlook clashes with the more medium-to-long-term view that CRU Group’s consulting arm had given recently. For now, look for depressed Chinese copper prices.
Speaking of Which, Today’s Copper Prices
With a 0.9 percent increase over the past day, the Japanese copper cash price was the biggest mover, closing at JPY 765,000 ($7,272) per metric ton on Monday, September 8. The price of US copper producer grade 110 rose 0.5 percent to $3.86 per pound. The price of US copper producer grade 122 gained 0.5 percent to finish at $3.86 per pound. The price of US copper producer grade 102 inched up 0.5 percent to $4.05 per pound.
Chinese copper prices closed flat for the day. Chinese copper bar held its value on Monday at CNY 51,400 ($8,329) per metric ton. The cash price of Chinese copper saw little movement on Monday, closing out around CNY 51,600 ($8,361) per metric ton. The price of Chinese copper wire remained essentially flat at CNY 50,395 ($8,166) per metric ton. For the fifth consecutive day, the price of Chinese bright copper scrap held flat at CNY 44,300 ($7,178) per metric ton.
At $6,959, the copper 3-month price finished the market day on the LME up 0.1 percent per metric ton. Also on the LME, the primary copper cash price remained essentially flat at $6,972 per metric ton.