COMEX Copper Roundup for October 11

New York, October 11: On Wednesday, copper futures on the Chicago Mercantile Exchange (COMEX) fell for the second consecutive trading day.

As of the close, copper futures fell by 1.15 cents to 2.2 cents, with the most actively traded December 2023 copper futures falling by 2.2 cents or 0.61% to close at $3.612/lb.

December copper futures traded in a trading range of $3.5985 to $3.664.

Copper futures fell by 0.78% in two trading days.

Despite news that China may launch a new round of stimulus measures, new concerns about Chinese real estate turmoil loomed over the market, continuing to weigh on copper prices. Major Chinese real estate developer Country Garden Holdings Ltd warned on Tuesday it may not be able to repay overseas debt. The news reignited investor concerns about a further decline in construction activity. China is the world's largest copper consumer. The real estate industry is a large consumer of copper.

There were reports this week that Chinese policymakers are considering issuing at least 1 trillion yuan ($137 billion) of additional sovereign debt for infrastructure spending in an effort to boost the economy. Traders are closely watching whether China withdraws more economic stimulus in the future to boost economic growth.

The recent COMEX copper futures contract has fallen 3.01% so far this month and 5.03% so far this year. The closing price on Wednesday was 4.92% higher than the same period last year, but it is still 26.68% lower than the historical peak of $4.929 set in March 2022, because The high interest rate environment brought about by aggressive interest rate hikes in major Western economies has 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 Shanghai Futures Exchange's November 2023 copper contract closed up 30 yuan at 66,630 yuan per ton. November bonded copper futures on the Shanghai International Energy Trading Center (INE) fell 60 yuan to 58,870 yuan per ton.

On Wednesday, the trading volume of COMEX copper futures was 64,567 lots, compared with 68,796 lots on the previous trading day; the open volume was 201,214 lots, compared with 201,171 lots on the previous trading day.