Copper headed for the biggest weekly drop since November as China’s factory-gate prices extended a record run of declines, signaling weakening demand in the world’s largest metals user.
Investors are weighing signs of slower growth in China and Europe and tumbling oil prices against strength in the US. China’s producer-price index (SHCOMP) fell in December fell 3.3%, the most in 2 years, according to the National Bureau of Statistics. US payroll data showed unemployment last month slid to 5.7%, the lowest since 2008, according to a Bloomberg survey.
The cash price of Japanese copper experienced the biggest price decline of the day, dropping 0.4% to close at JPY 766,000 ($6,421) per metric ton on Thursday, January 8. The price of US copper producer grade 110 reached a 30-day low after decreasing 0.3% to $3.50 per pound. The price of US copper producer grade 122 fell 0.3% to a 30-day low of $3.50 per pound yesterday. After falling 0.3% to $3.69 per pound, the price of US copper producer grade 102 reached a 30-day low.
Chinese copper closed mixed yesterday. The price of Chinese copper bar declined 0.1% to CNY 46,400 ($7,469) per metric ton. The cash price of Chinese copper fell 0.1% to CNY 46,600 ($7,501) per metric ton. The price of Chinese copper wire flattened at CNY 45,640 ($7,346) per metric ton after two days of downward movement. The price of Chinese bright copper scrap remained essentially flat at CNY 40,100 ($6,455) per metric ton.
The cash price of primary copper fell to a 30-day low at $6,168 per metric ton after shifting 0.4%. Copper 3-month saw its price drop on the LME 0.3% to a 30-day low of $6,105 per metric ton yesterday.