Electrolytic copper prices settled moderately contributed by the concern over the inventory slowdown as well as modest GDP growth in the US even though China’s deterioration in the manufacturing PMI indicators. On February 28, the LME electrolytic copper value booked for $6,535 per ton, $2 higher than the previous day trading in the official cash terms while three months official held on $6,494 per ton without variation.
China’s manufacturing PMI readings posted a three-year low which was more significantly than the market expectations, but the market participants including Bloomburg sent the signal that the Chinese economy touched the floor, contributing to limit of the impact on the copper market. Besides, the news that the US GDP growth defended well, and the concern over the depleting LME stock supported the copper price globally.
The LME copper inventory however scaled down for the second day, approaching a 6-week low, spot price spreading for the three months registered $42 backwardation, showing extension compared with the previous day of $39, affecting as one of the leading factors supported the global electrolytic copper value.
The US GDP growth over the final quarter last year which drew all eyes of the market ended off with below 3 percent, but the better outlook for the global copper market ahead affected positively the electrolytic copper price around the globe.
Meanwhile, the LME electrolytic copper stock reduced 2,450 tons to 128,475 tons, registering a six-week low since January 15 recorded 133,600 tons.
Source: Steel&Metal News |
