Less Output From Peru Just the Latest Trial for Copper

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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.

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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.

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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.

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