Copper MMI: Metal Continues Banner 2017

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The Copper MMI jumped five points to 78 for our August reading, a high not seen in more than two years (the sub-index hit 79 in January 2015).

Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up

Copper has outperformed all the other base metals this month. LME copper prices increased by 7.8% in July.

The sharp increase in copper prices came after an announcement of a possible ban of copper scrap in China by the end of the year. The increase in copper prices was accompanied by heavy volume, which may signal a stronger uptrend.

However, volumes declined during the final days of July and the beginning of August.

Source: MetalMiner analysis of FastMarkets

The U.S. dollar has shown weakness since the start of 2017. The fall of the dollar during July coincided with an increase in copper prices. A weaker dollar commonly drives non-U.S. investment into commodities that are dollar-dominated (as copper is).

The U.S. dollar remains in a strong downtrend, touching lows not seen since May 2016.

Source: MetalMiner analysis of Trading Economics

What This Means for Industrial Buyers

Even though copper prices have increased sharply this month, a price retracement could occur  some time in August or September.

Copper price dynamics, together with volumes, will provide the signals to read the short- and long-term trend correctly.

Our Monthly Metal Buying Outlook informs buyers of the precise support/resistance levels (signals) to help decide when to shift buying strategy.

Free Sample Report: Our Annual Metal Buying Outlook

Actual Copper Prices and Trends

Chinese primary copper cash prices increased by 7.4% to $7,463.66/metric ton, while Indian copper prices rose by 6.7% to $6.35/kilogram. Chinese copper #2 also increased by 1.9% to $5,575.45/mt.

Prices of U.S. copper producer grade 110 and 122 increased 5.8% and 6.10%, respectively, to $3.64/pound and $3.65/pound. The price of U.S. copper producer grade 102 increased 5.5%, reaching $3.83/pound.

LME copper rose 7.7% to $6,381/mt.

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