NEW YORK, Aug. 2: Copper futures on the Chicago Mercantile Exchange (COMEX) fell sharply for a second straight day on Wednesday, reflecting weak manufacturing activity in major economies and China's failure to announce more details on stimulus measures. Keep traders cautious. A stronger dollar also put additional pressure on copper prices.
As of the close, copper futures fell by 5.5 cents to 6.6 cents. Among them, the most actively traded September 2023 copper futures fell 6.5 cents or 1.66% to close at $3.8435/lb. lowest closing price.
September copper traded in a range of $3.834 to $3.921.
Recently, China's top decision-makers have promised to optimize real estate policies, expand domestic demand and accelerate the issuance of local special bonds. But traders are still waiting for more details of China's follow-up policy to weigh how much the stimulus policy will boost metals demand. A metals trader expects markets to trade lower until China announces stimulus package (details).
Weak data on Chinese manufacturing activity also dimmed the outlook for metals demand, although the weak data raised expectations for more stimulus from China.
Shanghai Yangshan copper premiums fell to $29 a tonne, the lowest since May 18, reflecting China's current lackluster demand for imported copper.
The near-term contract of COMEX copper futures rose 0.58% so far this year, and the closing price on Wednesday rose 10.32% compared with the same period last year. recovery. Current copper prices are 22.35% below their all-time peak of $4.929 hit in March 2022, as high interest rates weigh on economic growth and commodity demand, while China's economy is performing worse than earlier expected.
Copper futures on COMEX fell by 14.6% in 2022, mainly because the outlook for global economic growth is worrisome. High inflation prompted European and American central banks to actively raise interest rates to curb inflation, exacerbating the risk of economic recession. In contrast, 2020 and 2021 copper has recorded two consecutive years of gains of 25%, the global economic green transition and electrification will help boost the additional demand for this widely used metal in the power and construction industries, while copper mines face Disruptions such as underinvestment and production disruptions.
The most actively traded September 2023 copper contract on the Shanghai Futures Exchange closed down 1,070 yuan at 69,790 yuan a tonne on Wednesday. Bonded copper futures for October 2023 on the Shanghai International Energy Exchange (INE) fell 990 yuan to 62,110 yuan a tonne.
On Wednesday, the trading volume of COMEX copper futures was 115,556 lots, compared with 134,596 lots in the previous trading day; the volume of short positions was 236,399 lots, compared with 240,799 lots in the previous trading day.
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