Copper price down as China industrial profits slow
Copper price fell again on Monday as slowing profit growth in industrial firms in China metals, rising inventories and low premiums sapped enthusiasm for the metal.
Copper for delivery in September fell 0.3% from Friday’s settlement price, touching $4.276 per pound ($9,407 per tonne) midday Monday on the Comex market in New York.
Profit growth at China’s industrial firms slowed again in May as surging raw materials prices squeezed margins and weighed on factory activity.
On-warrant inventories of copper in LME-registered warehouses have jumped to their highest since May 2020, while Yangshan premiums of the metal going into China languished.
Prices were also influenced by investor concerns over inflation in the United States that could lead to sooner-than-expected policy tightening.
“The short-term fundamentals have not managed to keep up with the extent to which prices have rallied,” said Saxo Bank analyst Ole Hansen, citing rising LME stocks and low premiums.
“The market has fallen in love with copper due to its green credentials and electrification focus but a rise in demand related to that has not started to pick up yet.”
