Copper stocks on the London Metal Exchange are still rising despite last week’s price rout, suggesting further weakness as consumers hold back even with prices near five-and-a-half year lows, analysts and traders said.
Copper prices fell around 8 percent in two days last week, but have failed to regain ground, with Goldman Sachs reiterating its bearish view on the metal due to a downturn in China’s property market.
The 3-month price of copper saw a 2.4% drop on the LME on Thursday, January 22, landing at $5,600 per metric ton and making it the biggest mover of the day. Primary cash copper saw its price drop on the LME 2.3% to a 30-day low of $5,630 per metric ton yesterday.
Thursday saw the price of US copper producer grade 122 drift down 1.2% to $3.32 per pound after a couple of stagnant days. After two changeless days, the price of US copper producer grade 110 fell 1.2% to $3.32 per pound. The price of US copper producer grade 102 closed Thursday at $3.51 per pound, halting its two-day flat run with a 1.1% decline. The cash price of primary Japanese copper increased 0.9% to JPY 707,000 ($5,999) per metric ton.
Chinese copper prices were mixed for the day. After falling for two days, the price of Chinese copper bar rose 0.8% to CNY 42,850 ($6,898) per metric ton. Following a two-day drop, the cash price of Chinese copper increased by 0.8% to CNY 43,050 ($6,931) per metric ton. The price of Chinese copper wire is back up, rising by 0.6% on Thursday to close at CNY 41,970 ($6,757) per metric ton. The price of Chinese bright copper scrap fell to a 30-day low at CNY 36,800 ($5,924) per metric ton after shifting 0.5%.