New York, July 5 news: Copper futures on the Chicago Mercantile Exchange (COMEX) fell on Wednesday, ending a two-day winning streak after the previous two days, as the dollar strengthened, the economic outlook and the demand for metals worried.
As of the close, copper futures fell by 1.75 cents to 2.6 cents, of which the most actively traded September 2023 copper fell 2.55 cents, or 0.67%, to close at $3.7685 per pound.
September copper traded in a range of $3.7325 to $3.8095.
A rise in the U.S. dollar on Wednesday was bearish for dollar-quoted metals, as it meant dollar-quoted copper was more expensive for buyers holding other currencies. ICE's September U.S. dollar index was at 103.035 points, up 0.37% from Tuesday. The dollar index is up 0.43% so far this year.
The closing price of the recent COMEX copper futures contract on Wednesday rose 9.82% from the same period last year, and is still down 1.37% so far this year, 23.85% lower than the historical peak of $4.929 hit in March 2022, mainly due to weak demand in the United States and Europe. Interest rate hikes by major central banks have put pressure on economic growth; China's economic performance this year has been weaker than previously expected, and the rebound in metal demand expected by the market at the beginning of the year is hard to find.
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, 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.
The most actively traded August 2023 copper contract on the Shanghai Futures Exchange closed down 430 yuan at 67,900 yuan a tonne on Wednesday. Bonded copper futures for September 2023 on the Shanghai International Energy Exchange (INE) fell 440 yuan to 60,380 yuan a tonne.
On Wednesday, the trading volume of COMEX copper futures was 84,535 lots, compared with 56,690 lots in the previous trading day; the number of open positions was 187,371 lots, compared with 190,619 lots in the previous trading day.
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