While copper prices have trended lower this week, the relatively small losses for the beleaguered metal showed how resilient the metal has been despite oversupply and pressure from the strong US dollar.
Copper saw limitations of production in Peru, suggesting that the oversupply problem could be temporary. Chilean mines put up for sale by Anglo-American PLC have suitors, as well, suggesting that producers still see money in the red metal.
The cash price of Japanese copper saw the largest increase this week on the weekly Copper MMI®, rising 2.2% to settle at JPY 798,000 ($7,330) per metric ton. The price of US copper producer grade 122 fell 1.1% to $3.74 per pound after rising 0.8% the week before. Following a 0.8% increase in the week prior, the price of US copper producer grade 110 fell 1.1% last week to $3.74 per pound. The price of US copper producer grade 102 fell 1.0% to $3.93 per pound after rising 0.8% the week before. Prices for Korean copper strip remained constant, closing the week at KRW 9,640 ($9.02) per kilogram.
Chinese copper prices were mixed for the week. Following a 0.6% increase in the week prior, the price of Chinese copper bar fell 0.6% last week to CNY 48,900 ($7,962) per metric ton. The cash price of Chinese copper fell 0.6% to CNY 49,100 ($7,994) per metric ton after rising 0.6% the week before. Chinese copper wire traded sideways last week, hovering around CNY 50,395 ($8,205) per metric ton. Following a steady week, prices for Chinese bright copper scrap closed flat at CNY 44,300 ($7,213) per metric ton.
Following a 1.0% increase in the week prior, the primary copper cash price fell 1.5% on the LME last week to $6,681 per metric ton. The copper 3-month price fell 1.3% on the LME to $6,615 per metric ton after rising 0.6% the week before.
The Copper MMI® collects and weights 12 global copper metal price points to provide a unique view into copper price trends. For more information on the Copper MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.