Copper recovered as the day progress
After starting Thursday, July 21, on a weaker note, copper prices recovered from the intraday lows as the day progressed. At 12:50 PM EDT on July 21, the COMEX copper futures contract for September delivery was trading at $2.26 per pound, a gain of 0.27%.
Please read Weakness in Precious Metals in the Early Morning on July 21 to see how copper performed in the early morning hours on July 21.
Prices influenced by the data from China
The recently released Chinese data has been influencing copper prices. Considering the fact that the China accounts for more than 45% of the global copper demand, this data should impact copper price trends. According to data released by the National Bureau of Statistics, China’s production of copper in the first six months of this year increased by 7.6% compared to the same period in 2015.
Considering the global glut situation and weaker signals of demand growth, the increase in China’s copper production instead of cutting back dented the sentiment in the Market. In addition, the International Copper Study Group (or ICSG) reported in its July 2016 copper bulletin that the global refined copper production for the first four months of 2016 increased by ~4.5% compared to production for the same four months in 2015.
According to the latest data from General Administration of Customs, the copper imports by China for June 2016 has increased by ~20% to 305,304 tons. In the same month, copper exports have increased by 192% to 42,596 tons.
At 1:00 PM EDT on July 21, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), Billiton (BHP), and Rio Tinto (RIO) gained ~3.3%, ~5.1%, ~2.3%, and ~2.2%, respectively. The SPDR S&P Metals & Mining ETF (XME) gained ~0.41% whereas the PowerShares DB Base Metals ETF (DBB) fell by ~0.07%.
The following article explains the performance of gold on Thursday, July 21.