copper price

This morning in metals news: General Motors reported strong Q2 sales in China; miner Anglo American said it had completed its first maritime biofuel trial; and, lastly, the copper price has trended sideways so far in July.

Receive the latest short-term and long-term outlook for the full range of industrial metals (base and ferrous) at the annual MetalMiner Forecasting Workshop on Aug. 25

General Motors reports strong China sales in Q2

General Motors headquarters

lindaparton/Adobe Stock

General Motors reported its Q2 sales with its joint ventures in China rose by 5.2%.

The automaker said vehicle deliveries totaled more than 750,000.

“The growth was driven by luxury and premium vehicles, midsize/large SUVs and MPVs, including the Cadillac CT5 and XT6, and Buick LaCrosse, Enclave and GL8 family,” GM said. “Sales of new energy vehicles (NEVs) across GM’s brands also posted a strong performance.”

GM also touted the expansion of its Ultium platform to China.

“In addition to offering popular EVs underpinned by SAIC-GM-Wuling’s locally developed GSEV platform, GM is bringing to China its advanced global EV platform – Ultium – which will empower a range of multi-brand and multi-segment EVs,” GM said. “The first Ultium-based model for China, the Cadillac LYRIQ all-electric SUV, made its global public debut at Auto Shanghai 2021, before it goes on sale early next year.”

Read more

The Copper Monthly Metals Index (MMI) decreased by 7.3% for this month’s reading, as copper prices declined.

July 2021 Copper MMI chart

The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.

Copper stock

Since the beginning of the year, there have been concerns over copper production levels and stock availability.

LME on-warrant tonnages were at the 100,000/mt level, averaging 84,654 metric tons between January and June. However, throughout June, stock tonnage nearly doubled. Stock tonnage started the month at 97,975 tons and closed at 198,275 tons.

This could be a signal that speculative demand has adjusted. This is particularly true after China attempted to remove excessive speculation by issuing stern warnings to the domestic market, along with the recent release of state stock.

China’s efforts had a strong effect on the copper market. The country represents approximately 50% of global copper consumption.

Read more

Global copper mine production rose by 3.7% in the first quarter of 2021, the International Copper Study Group (ICSG) reported this week. The group estimated an apparent global copper surplus of 130,000 metric tons.

Stay up to date on MetalMiner with weekly updates – without the sales pitch. Sign up now.

Copper mine production gains to start the year

copper mine

Gary Whitton/Adobe Stock

Global copper mine production recovered during the first three months of the year, the ICSG reported this week.

Concentrate production rose by 5.5%, while solvent extraction-electrowinning fell by 3.5%.

“Output in Peru, the world’s second biggest copper mine producing country, increased by 3% mainly because March production was up by 18% from a constrained March 2020 basis,” the ICSG reported. “However, Jan-Mar 2021 production is still 10% below that of Jan-Mar 2019.”

Earlier this month, Stuart Burns delved into Peru’s ongoing COVID-19 crisis, plus its recent presidential run-off.

Read more

It would seem Beijing only has to speak and the market reacts — this time, it’s about base metals.

Worried by what it sees as excessive inflation in commodity prices, which it fears will lead through into factory gate increases, China warned speculators last month over “excessive speculation.” The warning from China’s National Food and Strategic Reserves Administration hit the iron ore market hard, the Financial Times reports, sending the price 10% lower.

Do you know the five best practices of sourcing metals, including aluminum?

China turns to base metals

China aluminum

Grispb/Adobe Stock

This month, Beijing has turned its attention to base metals.

The authorities have hinted they may release metal from their strategic reserves. The move would be an overt attempt to dampen further price rises in what it sees as a speculator-fueled rally. Where applicable, it would provide additional supply for those metals where supplies are genuinely tight.

The country holds strategic reserves in copper built up over decades. During slumps, like after the financial crisis, Beijing has stepped in to support domestic producers.

State secrets

As a strategic reserve, copper stocks are a state secret.

Read more

This morning in metals news: the U.S. consumed a record amount of renewable energy in 2020; U.S. housing starts jumped in May; and the copper price has been on the decline since peaking last month.

Each month, MetalMiner hosts a webinar on a specific metals topic. Explore the upcoming webinars and sign up for each on the MetalMiner Events page.

US hits renewable energy consumption record

renewables

ipopba/Adobe Stock

The U.S. consumed a record amount of renewable energy in 2020, the Energy Information Administration (EIA) reported.

“In 2020, consumption of renewable energy in the United States grew for the fifth year in a row, reaching a record high of 11.6 quadrillion British thermal units (Btu), or 12% of total U.S. energy consumption,” the EIA said. “Renewable energy was the only source of U.S. energy consumption that increased in 2020 from 2019; fossil fuel and nuclear consumption declined.”

Housing starts gain in May

Meanwhile, U.S. housing starts picked up in May from the previous month, the Census Bureau reported.

Read more

The Copper Monthly Metals Index (MMI) increased by 7.8% for this month’s reading, as the copper price remains high but dipped below the $10,000/mt level.

June 2021 Copper MMI chart

Each month, MetalMiner hosts a webinar on a specific metals topic. Explore the upcoming webinars and sign up for each on the MetalMiner Events page.

Copper prices retrace

On May 10, the LME three-month copper price closed at $10,720 per metric ton, hitting record highs last month.

Since then, prices declined below $10,000/mt.

SHFE prices followed the same trend.

The price retrace might be due partially to the stern warnings issued by Beijing about market discipline and excessive speculation in an effort to cool off prices.

Moreover, on June 7, trade data from China showed that copper imports fell 8% in May compared to the previous month. This might have scared some investors, as lower imports could mean lower demand, which decreases buying interest.

This could also signal that the pace of economic growth might be slowing. Along with less market speculation, that could mean the price will correct and consolidate.

Read more

This morning in metals news: US nonfarm payroll employment rose by 559,000 in May; the EU plans to impose carbon emissions costs on imports of steel, cement and electricity, Reuters reported; and the LME copper price dropped below $10,000 per metric ton.

Each month, MetalMiner hosts a webinar on a specific metals topic. Explore the upcoming webinars and sign up for each on the MetalMiner Events page.

Nonfarm payroll employment rises in May

nonfarm payrolls

Ekahardiwito/Adobe Stock

Nonfarm payroll employment in the US increased by 559,000 in May, the Bureau of Labor Statistics reported today.

Meanwhile, the unemployment rate declined by 0.3 percentage point to 5.8%.

“Notable job gains occurred in leisure and hospitality, in public and private education, and in health care and social assistance,” the Bureau of Labor Statistics reported.

EU to slap carbon emissions costs on imports

The European Union will introduce new carbon emissions costs on imports of steel, cement and electricity, Reuters reported.

Read more

Global copper mine production rose by 3.5% through the first two months of the year, the International Copper Study Group reported.

Furthermore, copper concentrate production rose by 5% during the period, while solvent extraction-electrowinning fell by about 3%.

The MetalMiner Best Practice Library offers a wealth of knowledge and tips to help buyers stay on top of metals markets and buying strategies.

Recovering copper production

copper mine

vadiml/Adobe Stock

Strong Chinese demand powered metals markets last year, particularly as demand still lagged in Europe, the United States and elsewhere.

Meanwhile, on the supply side, copper mine production took a hit, particularly in South America, as the COVID-19 pandemic worsened. (MetalMiner contributor Christopher Rivituso recently summarized developments in the copper market and where prices could go this year.)

However, output recovered throughout the year and into 2021.

Chile, the top copper producer, saw its copper mine production fall by 2.6% during the first two months of the year.

Meanwhile, Peru, the second-largest producer, saw its output fall by 7.5% in January. Peru’s mine output bounced back in February, leading to an aggregated 3.7% drop for the two-month period.

Read more

The copper price is likely to finish 2021 lower than its current level. However, they could yet see some further gains in the year, industry watchers told MetalMiner.

“It’s sentiment-driven,” one analyst said about current prices for the base metal and the prospect for increases in them over the year.

Each month, MetalMiner hosts a webinar on a specific metals topic. Explore the upcoming webinars and sign up for each on the MetalMiner Events page.

Copper price roller coaster

copper mine

Gary Whitton/Adobe Stock

Copper could achieve $15,000 for a short while, a second analyst said, but warned that it would not be unsustainable.

Sustained higher prices could also impede rollouts of new electric vehicles. As such, the ongoing “environmental revolution” would precede at a much slower pace, the first source added.

“It would lose so much demand to aluminum in terms of cabling,” which is notably cheaper, the first analyst said about continuing rises in prices.

Copper on the London Metal Exchange (LME) has sharply risen on the year. LME three-month copper reached a high of $10,724.50 per metric ton on May 10. That more than doubled the $5,266 reported on May 11, 2020.

That price has since fallen, however. The copper price finished Monday at $9,868 per metric ton on news that the China’s National Development and Reform Commission warned commodity companies against pushing up prices by maintaining “normal market order.”

Read more

This morning in metals news: the US steel capacity utilization rate reached 79.0% last week; the state-owned Indonesia Battery Corporation and South Korea’s LG will build a $1.2 billion battery plant in Indonesia; and the copper price has cooled since reaching an all-time high earlier this month.

Each month, MetalMiner hosts a webinar on a specific metals topic. Explore the upcoming webinars and sign up for each on the MetalMiner Events page.

US steel capacity utilization rate at 79.0%

hot rolled steel

niteenrk/Adobe Stock

US steel capacity utilization reached 79.0% for the week ending May 22, the American Iron and Steel Institute (AISI) reported.

The rate marked a decline from 79.2% posted the previous week. Meanwhile, the rate for the same week in 2020 had reached just 54.6%.

Production during the week ending May 22 totaled 1,793,000 net tons, down 0.3% from the previous week. However, the output total marked an increase of 46.6% on a year-over-year basis.

Read more

1 2 3 151