Copper Price Outlook: Not So Hot For China Wire Rod Producers

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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.

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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.

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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.

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