Copper edged lower on Thursday, still under pressure from a stronger US dollar and further signs of slowing economic growth in Europe and China, Reuters reported.
Copper was finding only limited support from comments by Peru’s deputy mines minister that output in the world’s No. 3 copper producer would be less than previously touted, suggesting an international supply glut may fall short of expectations.
“It’s helped, but in the big picture we don’t see it as a major factor in eliminating oversupply,” a metals trader in Sydney told Reuters.
Against the backdrop of weak demand is a growing expectation that a surplus in the copper cathode market will weigh further on prices. Analysts polled by Reuters in October expected the copper market to show a surplus this year and an even bigger surplus in 2015.
On Wednesday, November 5, the day’s biggest mover was the Japanese copper cash price, which saw a 3.5% increase to JPY 801,000 ($7,357) per metric ton. The price of US copper producer grade 110 saw a 1.1% decline to $3.74 per pound. The price of US copper producer grade 122 declined 1.1% to $3.74 per pound. The price of US copper producer grade 102 saw a 1.0% decline to $3.93 per pound.
Chinese copper closed mixed on Wednesday. At CNY 48,820 ($7,949) per metric ton, Chinese copper bar fell 0.9% on Wednesday. The cash price of Chinese copper fell 0.9% to CNY 49,020 ($7,981) per metric ton. The price of Chinese copper wire held steady at CNY 50,395 ($8,205) per metric ton. For the fifth day in a row, the price of Chinese bright copper scrap remained essentially flat at CNY 44,300 ($7,213) per metric ton.
The cash price of primary copper weakened by 1.4% on the LME, settling at $6,705 per metric ton. The 3-month price of copper saw a 1.0% decline on the LME to $6,660 per metric ton.