New York, September 20: Copper futures on the Chicago Mercantile Exchange (COMEX) rose on Wednesday due to a weaker U.S. dollar and a more optimistic demand outlook for the top metal consumer.
As of the close, copper futures rose by 2.8 cents to 3.25 cents, with the most actively traded December 2023 copper futures rising by 2.9 cents or 0.77% to close at $3.776 per pound.
December copper futures traded in a trading range of $3.742 to $3.7895.
The market is paying close attention to the demand prospects of China, the top metal consumer. China has recently introduced a series of measures to support economic growth and its struggling real estate market. The real estate industry is one of the major users of copper consumption.
A seasonal pickup in construction and manufacturing activity will also help improve demand for industrial metals. Traders are awaiting a seasonal pickup in demand for industrial metals after the summer.
The U.S. dollar exchange rate index closed at 104.788 points on Wednesday, down 0.04% from Tuesday. The dollar is down 0.2% so far this week. A weaker dollar makes dollar-priced metals more attractive to buyers holding other currencies.
The recent COMEX copper futures contract has fallen 0.69% so far this month and 1.55% so far this year. The closing price on Wednesday was still 6.68% higher than the same period last year.
The current copper price is 23.99% lower than the historical peak of $4.929 hit in March 2022, because high interest rates in Western economies have suppressed economic growth and commodity demand, and China's economic performance has been weaker than earlier expectations.
COMEX copper futures fell 14.6% in 2022, mainly because the global economic growth outlook is worrying. High inflation has prompted European and American central banks to actively raise interest rates to curb inflation, exacerbating the risk of economic recession. By comparison, copper in 2020 and 2021 has recorded gains of 25% for two consecutive years. The green transformation of the global economy and electrification have helped boost additional demand for this metal widely used in the power and construction industries, while copper mines are facing Disruptions such as underinvestment and production disruptions.
On Wednesday, the October 2023 copper contract on the Shanghai Futures Exchange fell 240 yuan to 68,760 yuan per ton. Bonded copper futures for January 2024 on the Shanghai International Energy Trading Center (INE) fell 270 yuan to trade at 60,900 yuan per ton.
On Wednesday, the trading volume of COMEX copper futures was 53,540 lots, compared with 67,633 lots on the previous trading day; the short volume was 201,097 lots, compared with 197,540 lots on the previous trading day.
微信扫一扫打赏
