COMEX July 27 Copper Roundup

New York, July 27 news: Copper futures on the Chicago Mercantile Exchange (COMEX) rebounded in early trading on Thursday, but ultimately failed to hold the early gains and closed down for the second consecutive day. A stronger dollar weighed.

As of the close, copper futures fell by 2 cents to 2.7 cents. Among them, the most actively traded September 2023 copper closed at US$3.8755/lb, down 2.65 cents or 0.68% from the previous trading day.

September copper traded in a range of $3.8535 to $3.9435.

In the past two trading days, copper futures fell by 0.99%.

The dollar strengthened after U.S. gross domestic product grew 2.4 percent in the second quarter, which far exceeded market expectations on Thursday.

ICE's U.S. dollar index closed at 101.204, up 0.90% from Wednesday and up 0.74% so far this week. A stronger dollar is bearish for copper, as it makes dollar-quoted copper more expensive for buyers holding other currencies.

The near-term COMEX copper futures contract rose 3.27% so far this month and 1.52% so far this year. The closing price on Thursday was 11.18% higher than the same period last year, partly reflecting the market's optimism that China may introduce more economic stimulus measures.

In contrast, COMEX copper futures fell by 14.58% in 2022, reflecting the worrying outlook for global economic growth. High inflation has prompted central banks in Europe and the United States to actively raise interest rates to curb inflation, while rising borrowing costs have exacerbated the risk of economic recession. In the medium to long term, the green transition of the global economy and electrification are helping to boost additional demand for the metal, which is widely used in the power and construction industries, while copper mine production has been disrupted.

The most actively traded September copper contract on the Shanghai Futures Exchange fell 180 yuan to close at 69,170 yuan a ton on Thursday. Bonded copper for October delivery on the Shanghai International Energy Exchange (INE) fell 140 yuan to close at 61,570 yuan a tonne.

On Thursday, the trading volume of COMEX copper futures was 87,453 lots, compared with 76,423 lots in the previous trading day; the volume of short positions was 234,513 lots, compared with 234,713 lots in the previous trading day.