Copper prices fell for the third time in 4 sessions as demand concerns mounted amid further signs of slowing in China, the world’s biggest metals user.
New-home prices dropped last month in 67 cities of the 70 tracked by the government, China’s National Bureau of Statistics said today. Construction accounts for 21% of China’s copper demand, according to Deutsche Bank AG. The dollar reached a five year high against a basket of 10 currencies, paring demand for metals as alternative investments.
Following two days of increases on the LME, the copper cash price dropped by 2.6% to end at $6,385 per metric ton on Wednesday, December 17. The copper 3-month price declined 2.3% on the LME to $6,350 per metric ton, after two days of improvement.
The cash price of primary Japanese copper closed at JPY 788,000 ($6,757) per metric ton. Following a couple days of improvement, the metal’s price weakened by 2.0%. After falling 0.6% to $3.58 per pound, the price of US copper producer grade 122 reached a 30-day low. The price of US copper producer grade 110 fell 0.6% to a 30-day low of $3.58 per pound yesterday. US copper producer grade 102 saw its price drop 0.5% to a 30-day low of $3.77 per pound on Wednesday.
Chinese copper prices were down for the day. Wednesday saw the price of Chinese bright copper scrap drift down 1.2% to CNY 40,200 ($6,496) per metric ton after three quiet days. Chinese copper bar prices saw a 0.5% decline to CNY 47,100 ($7,611) per metric ton. The cash price of Chinese copper declined 0.5% to CNY 47,300 ($7,643) per metric ton. Chinese copper wire ended the day at CNY 46,320 ($7,485) per metric ton, after the 0.4% drop yesterday.