Copper futures continue to falter as lack of movement in China’s copper inventories tell of a market with slack demand. Copper futures are down 130 points today currently trading at $2.1520 per pound for September delivery at the Commodity Exchange in New York City.
China is the worlds largest importer of copper and user of the industrial metal by making grand items used for infrastructure and as small as coins. Right now China’s economic numbers do not project growth and the lack of demand in current inventories is corroborating the outlook for the copper market.
BMI Research, a leading industry analyst group, shared their fundamental view of the copper futures market by stating, “We expect China’s refined copper imports to decelerate over the remainder of the year, and will remain wary of any other rapid movements in inventories.” BMI adds, “While the corresponding decline in Shanghai inventories largely offset the jump in [London Metal Exchange], the shift suggests that China’s strong H116 economic data does not in fact reflect improving demand growth.”
The trend for copper futures has just turned “down” as of Friday. Copper futures overall remain range-bound, however since March.
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