Copper futures extended their downturn to below $4.6 per pound in June, near its lowest level in one month and fully erasing May’s rally that took prices to a record high of $5.2 amid evidence of low demand in the near term. After the official PMI reflected an unexpected contraction in China’s manufacturing sector in May, trade data for the period pointed to a 7.1% drop in imports of copper ore turnover despite the surge in prices, as refiners have been using scrap to support output. Consequently, Chinese inventories rose to their highest since 2020, beating seasonal factors that favor a drawdown. This made the price of deliveries from Shanghai bonded warehouses remain at a discount to LME for two straight weeks. Still, prices were 15% higher year-to-date amid speculative bets of looming shortages. Copper’s role in electrification through grid-scale energy and data-center infrastructure pinned speculation, magnified by the difficulty of starting new projects for fresh ore supply.
Copper increased 0.57 USd/LB or 14.65% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Historically, Copper reached an all time high of 5.20 in May of 2024. Copper - data, forecasts, historical chart - was last updated on June 9 of 2024.
Copper increased 0.57 USd/LB or 14.65% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Copper is expected to trade at 4.68 USd/LB by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 4.92 in 12 months time.