Copper MMI®: Flat Demand From China Still Copper’s Bane

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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.

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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.

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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.

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