Copper futures fell the most in three weeks after a report showed declining property prices in China, the world’s largest metal user.
New-home prices fell in 64 out of 70 cities in January, Chinese government data showed on Tuesday. China’s first interest rate cut since 2012, which happened in November, hasn’t revived construction yet. Property accounts for about half of China’s copper demand, according to Goldman Sachs Group Inc.
“More and more reports are indicating that the slowdown is not getting any better,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, told Bloomberg News. “Prices will probably remain under pressure until we see China taking some aggressive steps to boost growth.”
Chinese copper bar saw little movement on Monday, February 16, staying around CNY 42,720 ($6,850) per metric ton. The Chinese copper cash price saw little price change last Friday at CNY 42,920 ($6,882) per metric ton. Chinese copper wire saw little change in its price last Friday at CNY 41,700 ($6,686) per metric ton. The price of Chinese bright copper scrap continues hovering around CNY 33,400 ($5,356) per metric ton for the fifth day in a row.
The price of US copper producer grade 122 showed little movement last Friday, hovering around $3.33 per pound. The cash price of primary Japanese copper saw little price change last Friday at JPY 712,000 ($6,004) per metric ton. The price of US copper producer grade 102 showed little movement last Friday at $3.52 per pound. The price of US copper producer grade 110 held steady around $3.33 per pound.
The 3-month price of copper ended a two-day climb, settling at $5,715 per metric ton on the LME. The cash price of primary copper steadied at $5,730 per metric ton following two-days of increases on the LME.