The price of Copper fell below the $10,000 per ton mark again on Friday following the release of US labor market data, Commerzbank’s commodity analyst Barbara Lambrecht notes.
China Copper imports fall compared with the previous month
“Ultimately, the weak US labor market report fueled concerns about the economy and demand, which, at least in the short term, outweigh hopes of rapid interest rate cuts. China’s trade balance figures were also rather disappointing: for one thing, Copper imports fell compared with the previous month, slipping to their lowest level since February this year. This signals rather subdued demand in China.”
“For another, Copper ore imports rose significantly for the second month in a row, to 2.76 million tons, the second-highest monthly figure ever. Record imports in April this year were only around 6% higher. Overall, Copper ore imports in the first eight months were almost 8% higher than in the same period last year, at a good 20 million tons. This dampens concerns about a shortage of raw materials for Copper smelting in the largest producing country and points to continued high Copper production in China.”
“This morning, however, another report is boosting the price of Copper: following an incident, operations at the world’s second-largest Copper mine, the Grasberg Mine in Indonesia, had to be suspended. The extent and sustainability of the damage is still unclear.”