Home > Research Prices > "Copper Price Dips 2-Week Lows On Fading Demand Hopes & China Covid Curbs."
2022-11-15 2022-11-07 2022-10-22 2022-08-22 2022-05-22 2021-11-22 2022

"Copper Price Dips 2-Week Lows On Fading Demand Hopes & China Covid Curbs."

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by RIM Research Team - 2074 Views

Copper prices in India declined to two-week lows and are trading at Rs.665.4/KG in the MCX futures.

Mumbai, India. Copper prices in India are down 0.41% or Rs.2.75/KG from the previous settlement price and are now trading at Rs.665.4KG in the MCX futures. Copper prices are almost down 5.02% from the recent 5-month highs of Rs.703.50 per KG.

Copper prices have fallen for the second week due to concerns about global demand and the US Fed Reserve's announcement of an interest rate hike in the coming days, which has weighed on the dollar index and pushed down Copper prices.

In 2022, India is expected to be one of the world's fastest-growing copper markets, despite the general trend of softening demand expansion globally, including top consumer China, as the global economy slows.

Despite the global downturn factors, India's economy is humming across sectors, from manufacturing to infrastructure and real estate, as pent-up demand from the COVID-19 pandemic, rising income, and a slew of government policies have boosted consumption.

According to World Bureau of Metal Statistics data, refined copper consumption in India increased by 45% from 2021 to 435,466 tonnes between January and August this year, outpacing global growth of 4% and a 5% increase in China during the same period.

Meanwhile, top metals consumer China continues to face new COVID-19 cases, particularly in industrial hubs and major cities such as Beijing and Guangzhou, raising concerns about the country's economic performance this year. On the other hand, rising Chinese Copper output is putting positive pressure on the Copper market.

According to National Bureau of Statistics data, China produced 953,000 tonnes of refined Copper in October, up 10.9% from the previous year. If China does not face Covid constraints in the third and fourth quarters, Copper output volume will be higher than ever.

According to the Economic Times, LME copper stocks in warehouses have increased to 89,925 tonnes. The increased copper stocks are because global demand for Copper is limited, particularly in China, due to low demand concerns in the global market. Meanwhile, the Copper price ratio has also continued to fall, and import market trading has been weak; the inflow of imported Copper also relatively limited.

The Reddish Brown Base Metal is Trading at Rs.665.4 per KG in the MCX futures.

Technically, the Copper market is under pressure, but compared to the previous month, Copper prices are on a bullish trend, attempting to maintain all-time highs despite worsening geopolitical concerns. Copper prices have fallen by Rs.2.75 from their previous closing price, and they are down 35.35 rupees from their five-month highs.

Meanwhile, Copper Scrap prices in India today are trading at,

Copper Cable Scrap Prices (Mumbai): Rs.677/KG

Copper Heavy Scrap Prices (Mumbai): Rs.666/KG

Copper Wire Scrap Prices (Delhi): Rs.630/KG

Copper Utensil Scrap Prices (Mumbai): Rs.605/KG

The COMEX (US Metal Exchange) - US Copper prices slipped 0.28% from the previous closing price and are now trading at $3.59/Lbs in the CME futures. Copper prices have bounced down more than two weeks due to a stronger dollar and fading demand hopes for a pause in US interest rate hikes.

BHP Group, the world's largest Copper mining company, said a recently announced strike at Chile's Escondida mine, the world's largest Copper mine, was unwarranted because the company adheres to safety standards and contractual commitments. The disruption in the largest Copper mine would immediately impact Copper production and supply of Copper Base Metal for a short span.

The US dollar has been significantly higher for more than a week, boosted by comments from Fed officials about a possible interest rate hike. Investors anticipate a less aggressive monetary policy, which will have a short-term impact on industrial metals demand and weigh on Copper prices.

FOMC member James Bullard stated that the central bank should continue raising interest rates, most likely by a full percentage point, because rate hikes have only had a limited effect on inflation. The fifth turn of the US Fed's interest rate hike has had little impact on the US economy, but major economies such as India are experiencing slower economic activity.

Though Copper stocks in registered warehouses increased, global copper stocks have fallen to record lows, with current inventories enough to supply world consumption for only a few days. Low stockpiles may cause shortage risks in the coming days, reflecting the tightness of the physical market and increasing the Copper prices.

Copper prices could continue to weaken further, weighed down by a stronger dollar, low inventories, upcoming interest rate hikes, and a weak global demand outlook. The driving force for copper prices will only come from the improvement of macro sentiment and expected demand recovery from China and other nations.

Dr. Copper - the New Gold, trading at $3.59 per Pound in the CME Futures.

Copper Scrap prices in the US today are trading at,

Copper No.1 Scrap Prices (US): 3.09 USD/Lbs.

Copper No.2 Scrap Prices (US): 2.70 USD/Lbs.

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MCX

MCX Yearly Copper Price Data

MCX High
871.0
MCX Low
610.3
MCX Avg
725.60

COMEX

COMEX Yearly Copper Price Data

COMEX High
4.8055
COMEX Low
3.2455
COMEX Avg
4.0437

MCX Year To Date Copper Price Data

MCX High
871.0
MCX Low
610.3
MCX Avg
724.39

COMEX Year To Date Copper Price Data

COMEX High
4.8055
COMEX Low
3.2455
COMEX Avg
4.0147

MCX Monthly Copper Price Data

MCX High
703.5
MCX Low
653.05
MCX Avg
678.64

COMEX Monthly Copper Price Data

COMEX High
3.9383
COMEX Low
3.4245
COMEX Avg
3.6660
Category : Copper

Tags : Copper Price, MCX Copper Price, Copper Prices India, COMEX Copper Prices, Copper Prices US