Copper dropped on Tuesday from a seven-week peak hit in the previous session as optimism over a weekend interest rate cut in top consumer China dissipated and inventories continued to rise.
The main stock indexes in China, which consumes some 45% of the world’s copper, fell more than 2% earlier as regulators’ approval of a flood of new initial public offerings prompted worries over tighter liquidity.
At JPY 729,000 ($6,083) per metric ton, the Japanese copper cash price moved up 2.1% on Monday, March 2, making it the day’s biggest mover. The price of US copper producer grade 110 held steady around $3.43 per pound. The price of US copper producer grade 102 held steady yesterday, remaining around $3.62 per pound. The price of US copper producer grade 122 saw little movement yesterday, closing out around $3.43 per pound.
Chinese copper prices were mixed for the day. Chinese copper bar gained 0.6% to finish at CNY 43,780 ($6,995) per metric ton. After a 0.6% increase, the Chinese copper cash price finished the day at CNY 43,980 ($7,027) per metric ton. Chinese copper wire prices inched up 0.6% to CNY 42,910 ($6,856) per metric ton. The price of Chinese bright copper scrap was unchanged at CNY 33,400 ($5,337) per metric ton.
The copper 3-month price changed direction with a 1.2% drop. After two days of improving prices, the metal finished at $5,840 per metric ton on the LME. The primary copper cash price closed at $5,880 per metric ton. Following a couple days of improvement, prices fell by 0.9% on the LME.