Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Copper price crumbles

Copper is off for the fifth day in a row due to concerns over inventories at a Chinese warehouse.

Copper wire
Source: Bloomberg

Copper is trading at 303 cents per pound, down 0.5% on the day due to an investigation into the stockpiles of copper at port in China. There have been rumours that a number of the import orders were duplicated, which could mean oversupply.

China’s domestic manufacturing sector is in contraction territory according to the HSBC survey, and if the nation has accidentally overbought copper imports there could be further declines in the price.

Overnight, Beijing will reveal CPI and PPI figures; the consensus for which are for readings of 2.4% and -1.5% respectively. If the reports are softer than expected, copper could drop below the 300 cents per pound mark. If consumer and producer demand is high, copper could target 306 cents per pound.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.