This week, BHP Billiton detailed a strategy to rely on copper production to shield its profits from falling iron ore prices. Other miners are considering similar strategies as the raw material for steel production continues to fall.
Meanwhile, Societe Generale and CitiBank both expressed optimism that copper production costs would go down as oil prices were projected to continue their fall well into next year.
After falling 1.1%, the Japanese copper cash price landed at JPY 790,000 ($6,638) per metric ton, making it the week’s biggest mover on the weekly Copper MMI®. The price of US copper producer grade 122 rose 0.3% to $3.65 per pound after falling 0.5% during the previous week. The price of US copper producer grade 110 rose 0.3% to $3.65 per pound after falling 0.5% during the previous week. The price of US copper producer grade 102 rose 0.3% to $3.84 per pound after falling 0.5% during the previous week. At KRW 9,640 ($8.75) per kilogram, the week finished with no movement for Korean copper strip.
Chinese copper prices were mixed for the week. The price of Chinese bright copper scrap rose 0.5% to CNY 40,700 ($6,572) per metric ton after falling 4.0% during the previous week. The price of Chinese copper bar rose 0.2% to CNY 47,880 ($7,731) per metric ton after falling 0.6% during the previous week. The Chinese copper cash price rose 0.2% to CNY 48,080 ($7,763) per metric ton after falling 0.6% during the previous week. Closing at CNY 47,010 ($7,591) per metric ton, Chinese copper wire remained unchanged for the week.
The primary copper cash price saw a 0.3% drop this week on the LME, closing at $6,471 per metric ton. The 3-month price of copper closed last week at $6,422 per metric ton, after a 0.2% drop on the LME.
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.