COMEX June 12 Copper Roundup

New York, June 12 news: Copper futures on the Chicago Mercantile Exchange (COMEX) fell for the second consecutive day on Monday, mainly due to worries about the demand outlook and a stronger dollar brought additional pressure.

As of the close, copper futures fell by 3.15 cents to 3.85 cents. Among them, the most actively traded July 2023 copper closed at $3.752 per pound, down 3.70 cents or 0.98% from the previous trading day.

July copper traded in a range of $3.735 to $3.778.

The dollar strengthened on Monday as traders remained on guard ahead of key central bank meetings this week, including the Federal Reserve.

The Federal Reserve will hold a two-day policy meeting starting Tuesday. The European Central Bank and the Bank of Japan also hold policy meetings this week.

The U.S. dollar rose on Monday, with ICE's June U.S. dollar index at 103.631, up 0.1% from the previous session. A stronger dollar makes dollar-priced copper more expensive for buyers holding other currencies, curbing demand and prices.

The near-term contract of COMEX copper futures rose 3.29% so far this month, mainly due to market expectations that China may cut interest rates and introduce more economic stimulus measures, coupled with data showing strong growth in China's renewable energy and auto industries, supporting copper futures. Chinese media reported that China's non-fossil fuel energy sources, such as wind and solar, now account for more than 50% of total installed capacity. China's auto sales rose 11.1 percent in the first five months of the year from a year earlier, according to the China Association of Automobile Manufacturers. Both industries are major consumers of copper.

So far this year, COMEX copper is still down 1.45%. The closing price on Monday was 11.05% lower than the same period last year and 23.91% lower than the historical peak set in March 2022. COMEX copper futures fell by 14.6% in 2022, mainly because the outlook for global economic growth is worrying. High inflation prompted European and American central banks to actively raise interest rates to curb inflation, exacerbating the risk of economic recession. In contrast, copper has recorded two consecutive years of gains of 25% in 2020 and 2021, as the green transition of the global economy and electrification help boost additional demand for the metal, which is widely used in the power and construction industries, while copper mines face challenges. Disruptions such as underinvestment and production disruptions.

The July 2023 copper contract on the Shanghai Futures Exchange closed down 50 yuan at 67,100 yuan a tonne on Monday. Bonded copper futures for August delivery on the Shanghai International Energy Exchange (INE) fell 40 yuan to 59,700 yuan a tonne.

From the perspective of fund dynamics, the position data released by the US Commodity Futures Trading Commission (CFTC) showed that speculative funds were net long in the US copper futures market last week, which was the second net purchase in three weeks. As of June 6, speculative funds held a net short position of 10,965 lots in the COMEX copper futures and options market, a decrease of 12,074 lots from the previous week, and a net sell of 6,574 lots last week.

On Monday, the trading volume of COMEX copper futures was 111,722 lots, compared with 114,761 lots in the previous trading day; the volume of short positions was 218,531 lots, compared with 227,729 lots in the previous trading day.