The price of copper remained stable at levels greater than $ 9,600 per ton at the beginning of the week. However, the downward pressure remains high, says Thu Lan Nguyen, head of FX research and raw materials of Commerzbank.
The signals still point to expansion
“On the one hand, the accumulation of inventories in the LME has continued since the beginning of the month, which indicates a slowdown in the demand for imports from USA. On the other hand, the still robust imports of copper mineral of the most important metal producer in the world, China, suggest that copper production there will remain dynamic for the moment. Imports have fallen significantly since their historical maximum in April in April.”
“In general, however, there are still around 6% above the first half of the year compared to the same period last year. Until now, the Chinese Foundions seem to be handling the low charges of treatment and refining. The increase in the price of copper, which has improved margins, has undoubtedly helped. Since the beginning of the year, the negotiated price in the LME has increased almost 10%.”
“However, given that US tariffs will probably have a price containment effect (outside the US), no more support is expected on this side. In this sense, it is questionable how profitable it is for Chinese foundations to maintain production at a high level. At the moment, however, the signs still point to the expansion.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
