The current bearish sentiment toward copper is being driven by concerns about China’s economy slowing with the market ignoring the fact that mine supply is looking increasingly constrained, Citibank‘s research department said Tuesday.
The price of US copper producer grade 110 inched up 0.6% to $3.35 per pound. The price of US copper producer grade 122 rose 0.6% to $3.35 per pound. The cash price of primary Japanese copper declined 0.6% to JPY 707,000 ($5,945) per metric ton.
Over the last decade, average global copper consumption growth has been in the region of 2.5% a year, “a remarkably low average given the strong growth in China consumption rates.
Chinese copper prices were flat for the day. For the fifth day in a row, the price of Chinese copper bar remained essentially flat at CNY 42,800 ($6,840) per metric ton. For the fifth consecutive day, the cash price of Chinese copper held flat at CNY 43,000 ($6,871) per metric ton. The price of Chinese copper wire remained essentially flat at CNY 41,880 ($6,692) per metric ton. The price of Chinese bright copper scrap continues hovering around CNY 33,400 ($5,337) per metric ton for the fifth day in a row.
The primary copper cash price weakened by 0.9% on the LME, settling at $5,657 per metric ton. Also on the LME, the 3-month price of copper fell 0.7% to $5,651 per metric ton.