New York, Sept. 5 news: Copper futures on the Chicago Mercantile Exchange (COMEX) fell on Tuesday, as concerns about the global economic growth outlook intensified, pushing the dollar higher and putting pressure on copper prices.
As of the close, copper futures fell by 0.15 cents to 0.7 cents, and the most actively traded December 2023 copper futures fell 0.35 cents, or 0.09%, to close at $3.8485 per pound.
December copper traded in a range of $3.794 to $3.8725.
The dollar rose on Tuesday, meaning copper was more expensive for buyers holding other currencies. ICE US dollar index closed at 104.763 points, up 0.6% from the previous trading day. The dollar is up 1.1% so far this month and 2.1% so far this year
The near-term contract of COMEX copper futures rose 0.144% so far this year, and the closing price on Tuesday was 9.86% higher than the same period last year, mainly because the market expected China to introduce stimulus measures to boost economic growth.
Copper futures fell 14.6% in 2022, as the outlook for global economic growth is worrying, and high inflation has prompted central banks in Europe and the United States to aggressively raise interest rates to curb inflation, exacerbating the risk of a 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.
From the perspective of fund dynamics, the position data released by the US Commodity Futures Trading Commission (CFTC) shows that speculative funds have reduced their net short positions in the US copper futures market for the second consecutive week. As of August 29, speculative funds held net short positions of 6,313 lots in the COMEX copper futures and options market, a decrease of 8,796 lots from the previous week. In comparison, net sales of 3,018 lots were recorded in the previous week.
The October 2023 copper contract on the Shanghai Futures Exchange closed down 670 yuan at 69,240 yuan a tonne on Tuesday. Bonded copper futures for November delivery on the Shanghai International Energy Exchange (INE) fell 580 yuan to 61,350 yuan a tonne.
In registered warehouses of the Shanghai Futures Exchange, copper inventories on Friday (September 1) were 46,591 tons, an increase of 6,006 tons from 40,585 tons a week earlier. It was 81.5% lower than its peak of 252,455 tonnes.
On Tuesday, the trading volume of COMEX copper futures was 100,087 lots, compared with 90,182 lots in the previous trading day; the number of short positions was 192,035 lots, compared with 190,258 lots in the previous trading day.
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