China smelter group agrees to lower Q1 copper charges
The charges tend to fall when ore supply declines and rise when more concentrate is available.
The copper price hit the lowest since November on Thursday after inflation data from China added to concerns over the strength of the country’s economic recovery.
China’s consumer prices rose at the slowest pace in more than two years in April. Producer deflation deepened last month, highlighting the broader economy’s struggles after the lifting of covid restrictions in December.
“China also has seen a sizeable increase in refined copper exports over the last couple of months, suggesting that domestic demand is not as strong as many were expecting,” said ING analyst Ewa Manthey.
Copper for delivery in July on the Comex market in New York touched $3.70 per pound ($8,140 per tonne), down 3.6% compared to Wednesday’s closing.
[Click here for an interactive chart of copper prices]
“The copper market has broken down through the key support level of $8,450, which it was testing for a couple of days. It is triggered by weak inflation data out of China, where construction and infrastructure sectors are not doing particularly well,” said Dan Smith, head of research at Amalgamated Metal Trading.
Copper inventories in LME-registered warehouses continued to rise on Thursday, reaching 75,950 tonnes, their highest since March 20.
Adding pressure on dollar-priced metals, the dollar index rose, making the metals more expensive to holders of other currencies.
Read More: Column: Copper’s anticipated supply surplus is proving elusive
(With files from Reuters)
