Copper fell on the London Metal Exchange from $6,100/metric ton at the beginning of last week to $5,400/mt. It has recovered a bit since, but that 11% drop in only 3 trading days has shown major weakness in the oversupplied market.
With low oil prices dragging down most commodities, copper has been hit particularly hard and OPEC signalling that it will not curtail oil production is a sign that copper prices could remain weak for the foreseeable future.
The cash price of Japanese copper saw a 10.2% decline, finishing at JPY 688,000 ($5,924) per metric ton and making it the week’s biggest mover on the weekly Copper MMI®. The price of US copper producer grade 122 dropped 5.1% this week, closing out the third consecutive week of falling prices at $3.32 per pound. For the third week in a row, the price of US copper producer grade 110 dropped, falling 5.1% to $3.32 per pound. The price of US copper producer grade 102 fell 4.9% over the past week to $3.51 per pound. This was the third week in a row of declining prices. Korean copper strip gained a slight 1.7% this past week, finishing at KRW 9,800 ($9.10) per kilogram.
Chinese copper prices were down for the week. At CNY 41,240 ($6,669) per metric ton, the price of Chinese copper wire finished the week down 9.6%. Closing out the third week of declining prices, the price of Chinese copper bar dropped by 8.8%, finishing at CNY 42,300 ($6,840) per metric ton. The cash price of Chinese copper dropped 8.8% this week, closing out the third consecutive week of falling prices at CNY 42,500 ($6,872) per metric ton. The past week saw Chinese bright copper scrap close at CNY 36,900 ($5,967) per metric ton after a 8.0% decline.
The primary copper cash price fell 7.3% on the LME over the past week to $5,718 per metric ton. This was the fourth week in a row of declining prices. The 3-month price of copper fell 7.2% on the LME over the past week to $5,665 per metric ton. This was the fourth week in a row of declining prices.
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.