Copper Starts the Week Flat as Inventories Rise

Copper’s price started the week flat as two key factors weighed on the market; rising inventories and weak prospects of global economic growth. Given that copper is often regarded as the metal which clearly reflects the global economic outlook, “Dr. Copper” is trading sideways as a mirror of the weak prospects for growth in the global economy.

However, restocking in China is helping to prevent the metal from sliding a lot more as Chinese demand for the metal keeps traders busy. Additional help for copper is also coming from a weaker dollar. When the dollar is weak, copper buyers who hold other currencies find the price of the metal more attractive.

3-month contracts for copper were going for $9,987 per ton on the LME. This price point was reached on Friday so this week has started with no change to the 0.5% gain registered by the metal on Friday.

Last week, LME copper recorded a peak price of $10,192 and this was the highest price the metal had attained in 15 weeks. Cumulatively, copper has recorded a price appreciation of 14% thus far in the year, and the remaining months will reveal whether these gains are sustained or even surpassed.

Copper’s current price trajectory has surprised some analysts. Julius Baer’s analyst Carsten Menke says he is somewhat puzzled by the resilience copper is showing in the market given that globally, economic growth is losing steam when one looks at what is happening in China and the U.S. These conditions would lead one to expect copper’s price to retreat, but this isn’t happening.

Part of the answer to this puzzle lies in what is happening at warehouses registered with the Futures Exchange in Shanghai. Inventories have seen a 12.5% increase and stockpiles of the metal have climbed to a level last reached back in June. This restocking has helped to support global copper prices and prevent the metal from sliding into bearish territory.

Chinese industrial consumers of copper are currently purchasing the metal as they get hold of the supplies they will need before the October 1-8 holiday period temporarily halts operations.

Copper has also benefited from the suspension of production at a mine in Indonesia owned by Freeport after an accident at the start of this month. This suspension reduced the amount of copper entering the market and tamped down a possible glut that would have depressed prices.

As market dynamics keep shifting, entities like Aston Bay Holdings Ltd. (CVE: BAY) (OTCQB: ATBHF) will be keeping tabs on any developments that could impact the long-term trajectory of the market for copper.

NOTE TO INVESTORS: The latest news and updates relating to Aston Bay Holdings Ltd. (CVE: BAY) (OTCQB: ATBHF) are available in the company’s newsroom at https://ibn.fm/ATBHF

About Rocks & Stocks

Rocks & Stocks (“R&S”) is a specialized communications platform delivering deep insights into the mining industry. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, R&S is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, R&S brings its clients unparalleled recognition and brand awareness.

R&S is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from Rocks & Stocks, text “Rocks” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://RocksAndStocks.news

Please see full terms of use and disclaimers on the Rocks & Stocks website applicable to all content provided by R&S, wherever published or re-published: https://RocksAndStocks.news/Disclaimer

Rocks & Stocks
Los Angeles, CA
RocksAndStocks.news
310.299.1717 Office
Editor@RocksAndStocks.news

Rocks & Stocks is powered by IBN