Copper prices have struggled to maintain gains as rising inventories highlighted the prospect of oversupply amid concerns over the impact of rising COVID-19 cases on the global economy. Copper fluctuated between modest losses and gains after Chinese industrial activity extended solid growth in September, underlining a steady economic recovery from the coronavirus shock.
The overnight data shows that China is clearly improving, but at the same time so is the data in terms of copper stocks available in recent days. That squeeze was a fundamental support that helped the market rally, but that seems to have evaporated within a few days.
Copper is likely to struggle, at least in the short term, and risks a deeper correction.
Japan’s copper production in the second half of fiscal year 2020/21 will increase by 2.1% year-on-year, data received from foundries, while solid exports to main buyer China could help overcome local demand impacted by the pandemic.
Japan’s largest copper supplier Pan Pacific Copper (PPC), smelter No. 2 Sumitomo Metal Mining and Furukawa Co Ltd have plans for increased production from October to March. We expect healthy export demand as the Chinese economy continues to recover. Japanese domestic demand, on the other hand, is expected to remain weak in the second half
Japanese production of machined copper products is projected to decline by 15.6% in the current financial year, hitting a low since 1975, due to the COVID-19 crisis, while the country’s copper power cable shipment is expected to decline. 10.8%…..
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Commodities strategist, expert in supply chain market, procurement, forex and advisor Stablecoins. www.goldencross.io