New-home prices dropped last month in 67 of the Chinese 70 cities tracked by the government, the National Bureau of Statistics said. Construction accounts for 21% of China’s copper demand, according to Deutsche Bank AG. As such, copper has fallen accordingly this week.
There was, however, some good news hidden deeper in the numbers. While new home prices did, indeed, decline month-on-month in 67 of the 70 cities tracked by the NBS, the decline moderated, with most cities seeing a narrowing fall in home prices. This led to a bit of an uptick at the end of the week for copper futures in Shanghai.
The week’s biggest mover on the weekly Copper MMI® was the price of US copper producer grade 122, which saw a 1.9% decline to $3.58 per pound. This comes on the heels of a 0.3% increase the week before. The price of US copper producer grade 110 fell 1.9% to $3.58 per pound after rising 0.3% the week before. Following a 0.3% increase in the week prior, the price of US copper producer grade 102 fell 1.8% last week to $3.77 per pound. Prices for Korean copper strip remained constant, closing the week at KRW 9,640 ($8.77) per kilogram. The Japanese copper cash price closed at JPY 790,000 ($6,642) per metric ton after a flat week.
Chinese copper prices were down for the week. The price of Chinese copper bar fell 1.6% to CNY 47,100 ($7,580) per metric ton after rising 0.2% the week before. Following a 0.2% increase in the week prior, the Chinese copper cash price fell 1.6% last week to CNY 47,300 ($7,613) per metric ton. Chinese copper wire saw a 1.5% decline over the past week to CNY 46,320 ($7,455) per metric ton. The price of Chinese bright copper scrap fell 1.2% to CNY 40,200 ($6,470) per metric ton after rising 0.5% the week before.
The primary copper cash price fell 1.9% on the LME over the past week to $6,350 per metric ton. This was the third week in a row of declining prices. Closing out the third week of declining prices, the 3-month price of copper dropped by 1.6% on the LME, finishing at $6,318 per metric ton.
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.