Dr. Copper’s MMI® is Leading Industrial Metals Down, Below $6,000/mt?

by on

The monthly Copper MMI® registered a value of 79 in January, a decrease of 1.2% from 80 in December.

Copper_Chart_January-2015_FNL

Copper keeps falling to new lows. The 3-Month price on the London Metal Exchange fell to $6,075/metric ton on Friday. Will we see copper prices bellow $6,000/mt? Copper has never been this “cheap” since 2009.

Compare with Last Month’s Copper MMI.

With the market shifting into a surplus, copper’s fundamentals don’t look promising. Some people say that “Dr.” copper diagnoses the overall state of the global economy. If that’s the case, falling copper prices might be reflecting weakness in Europe and emerging markets.

The performance that copper is having might be pointing to further weakness in industrial metals. Copper could very well be showing the way. Copper remains in a textbook downtrend, making a series of lower lows and lower highs. At this point, it makes little sense to buy big quantities of copper while commodities keep sinking, the dollar keeps rising, foreign markets tumble, and other base metals keep getting hit.

Copper prices might look like a bargain, but, in a falling market, what seems cheap can become way cheaper. Stay with with the trend.

If you are tired of seeing prices fall after you buy/hedge and want to be alerted when the right time to hedge copper comes, take a look at our forecasting offering, and take a free trial.

* Get the complete prices every day on the MetalMiner IndX℠

The price of US copper producer grade 110 decreased by 2.7% this month, ending at $3.54 per pound. The price of US copper producer grade 102 saw a small decline this month, falling from $3.84 to $3.73 per pound. The cash price of Chinese copper fell a slight 0.8% over the past month to $7,607 per metric ton. The primary copper cash price finished the month at $6,358 per metric ton after dropping 0.4% on the LME. The 3-month price of copper ended the month on the LME at $6,289 per metric ton, down from $6,289. Chinese copper wire closed the month at $7,466 per metric ton after dropping 0.3%.

Chinese bright copper scrap finished the month at $6,511 per metric ton after gaining 4.3%. The cash price of primary Japanese copper rose a slight 0.5% over the past month to $6,592 per metric ton.

Korean copper strip held pat last month at $8.73 per kilogram.

The Copper MMI® collects and weights 12 global copper metal price points to provide a unique view into copper price trends over a 30-day period. 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.

{Comments Off on Dr. Copper’s MMI® is Leading Industrial Metals Down, Below $6,000/mt? Comments Off on Dr. Copper’s MMI® is Leading Industrial Metals Down, Below $6,000/mt?}