New York, May 23 news: Copper futures on the Chicago Mercantile Exchange (COMEX) fell for the second consecutive day on Tuesday, hitting a new low in nearly six months, mainly because economic data from China, the top importer of the metal, was disappointing. Worry about metals demand.
As of the close, copper futures fell by 7.95 cents to 8.4 cents, and the most actively traded July 2023 copper futures fell 8.4 cents, or 2.24%, to close at $3.667 per pound, which is also the date on November 29, 2022. Lowest closing price ever.
July copper traded in a range of $3.657 to $3.7545.
Copper futures fell continuously in the first two trading days of this week, with a cumulative decline of 2.18%.
The dollar rose for a second straight session on Tuesday, with U.S. traders now pricing in a 28 percent chance that the Federal Reserve will raise interest rates by an additional 25 basis points in June.
ICE's June U.S. dollar index closed at 103.385 points, up 0.3% from Monday and up 2% so far this month.
A stronger dollar makes dollar-denominated metals more expensive for holders of other currencies, which could dampen demand.
Traders await clarity on the outcome of the U.S. debt ceiling talks. Although the market is generally optimistic about reaching an agreement, if an agreement is not reached in time, it may bring shocks to the market.
The recent COMEX copper futures contract has fallen 5.90% so far this month and 4.31% so far this year, but the closing price is still 15.81% lower than the same period last year and 26.12% lower than the historical peak reached 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 890 yuan at 64,690 yuan a tonne on Tuesday. July bonded copper futures on the Shanghai International Energy Exchange (INE) fell 810 yuan to 57,430 yuan a tonne.
On Tuesday, the trading volume of COMEX copper futures was 85,750 lots, compared with 68,229 lots in the previous trading day; the number of empty positions was 209,864 lots, compared with 208,674 lots in the previous trading day.
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