Copper is stable on Wednesday
After starting the day on a positive note, copper continued to trade with stability at six-week high price levels. At 2:36 PM EST, the COMEX copper futures contract for July delivery was trading at $2.13 per pound—a gain of 0.71%. Read Copper Stable, Gold and Silver Weakened Early Wednesday to learn how copper performed in the early morning trade on Wednesday, June 22.
Decreased Brexit fears support copper prices
Decreased concerns about the Brexit vote due to a reversal in the leading sentiment supported copper prices. The murder of Jo Cox, a Labor Party lawmaker, made noticeable changes in the sentiment. According to poll results released after the murder, the lead increased for the “Remain” campaign. These results were released over the weekend. Copper started this week with a positive tone and rallied to multi-week high price levels. Copper gained ~3.8% since the beginning of this week.
Chinese demand concerns still weigh on copper
China is the biggest copper consumer in the world. It accounts for more than 45% of the demand. As a result, China’s economic situation and its growth projections have a huge impact on copper’s demand outlook. Disappointing economic releases along with decreased Chinese copper imports raised concerns about domestic demand in China. Chinese copper imports increased in May. They showed a year-over-year increase of 256%. These imports are expected to end up in bonded warehouses to create a tight domestic market situation.
Copper’s recent shift from Shanghai warehouses to London Metal Exchange warehouses resulted in a drop in copper prices. Read Global Copper Inventory Fluctuates, Leaves Investors Guessing to learn more about copper shifting from China to inventories. At 2:51 PM EST, major copper producers Freeport-McMoRan (FCX) and BHP Billiton (BHP) declined 1.1% and 0.87%. Glencore (GLNCY) and Rio Tinto (RIO) gained 2.4% and 0.23%, respectively. The SPDR S&P Metals & Mining ETF (XME) declined 0.92%.
In the next part, we’ll discuss how gold and silver performed on June 22.