Copper fell to the lowest in more than 4 years amid concern that Greece will leave the euro area and default on debt, crimping the outlook for European demand.
Some Greek politicians promised to ditch austerity measures if they win elections this month. The euro fell to an almost 9-year low versus the dollar. Copper slid 17% in 2014 amid signs of slowing demand from Europe and China, the world’s biggest user.
“The Greek issue is one more negative factor,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, told Bloomberg Businessweek in a telephone interview. “Unless the China situation improves or they announce some major stimulus, I don’t think concerns about copper are going away.”
Closing at CNY 47,000 ($7,565) per metric ton on Friday, January 2, Chinese copper bar saw the biggest change at a 0.9%. The Chinese copper cash price weakened by 0.9%, settling at CNY 47,200 ($7,597) per metric ton. Chinese copper wire finished the day down 0.5% to CNY 46,320 ($7,455) per metric ton. The price of Chinese bright copper scrap continues hovering around CNY 40,400 ($6,502) per metric ton for the fifth day in a row.
The price of US copper producer grade 122 showed little movement last Friday at $3.54 per pound. The cash price of primary Japanese copper remained essentially flat at JPY 794,000 ($6,623) per metric ton. The price of US copper producer grade 102 held steady last Friday, remaining around $3.73 per pound. The price of US copper producer grade 110 showed little movement last Friday, hovering around $3.54 per pound.
Following a couple of essentially changeless days, the primary copper cash price rose by 0.5% on the LME, closing at $6,358 per metric ton. At $6,289, the 3-month price of copper finished the market day on the LME up 0.3% per metric ton.