A slump in copper prices to their lowest in 5 years has pushed as much as a tenth of the world’s miners into the red, but the market may not yet feel enough pain to trigger deep production cuts this time round.
Prices on the London Metal Exchange pierced below $6,000 per tonne on Monday for the first time since October 2009, as the metal slid along with a relentless decline in oil prices and concerns about a growing metal surplus. Copper’s 16% decline since July is the biggest since 2013.
On Monday, January 12, the day’s biggest mover was the copper 3-month price, which saw a 1.3% decline on the LME to $6,080 per metric ton. Primary cash copper saw its price drop on the LME 1.3% to a 30-day low of $6,151 per metric ton on Monday.
The price of US copper producer grade 122 fell to a 30-day low at $3.50 per pound after shifting 0.3%. The price of US copper producer grade 110 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. The cash price of primary Japanese copper held steady around JPY 766,000 ($6,480) per metric ton.
Chinese copper closed mixed on Monday. The price of Chinese copper wire declined 0.7% to CNY 44,970 ($7,243) per metric ton. Chinese copper bar prices saw a 0.7% decline to CNY 45,780 ($7,374) per metric ton. The Chinese copper cash price fell 0.7% to CNY 45,980 ($7,406) per metric ton. The price of Chinese bright copper scrap remained essentially flat at CNY 40,100 ($6,459) per metric ton.