COMEX May 31 Copper Roundup

New York, May 31 news: Copper futures on the Chicago Mercantile Exchange (COMEX) fell on Wednesday, which was also the second consecutive day of losses. Concerns over global economic growth and demand in China prompted continued selling by speculative bears.

As of the close, copper futures fell by 2.4 cents to 2.7 cents. Among them, the most actively traded July 2023 copper closed at $3.6455 per pound, down 2.4 cents or 0.71% from the previous trading day.

July copper traded in a range of $3.6395 to $3.666.

Copper futures fell 6.18% in May, the biggest monthly drop since June 2022 and the second consecutive monthly decline. During April and May, copper futures fell by 11.54%.

Copper prices have given up all their gains in 2023, mainly due to weak demand in the United States and Europe, and central banks such as the Federal Reserve raising interest rates have put pressure on economic growth; Hope is fading.

The U.S. dollar rose on Wednesday, weighing on dollar-quoted metals. ICE’s June U.S. Dollar Basket Index closed at 104.245, up 0.16% from Tuesday and up 2.8% for the month.

So far this year, the near-term contract of COMEX copper futures has fallen 4.59%, down 16.14% from the same period last year, and 26.33% lower than the historical peak hit in March 2022.

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 July 2023 copper contract on the Shanghai Futures Exchange closed down 10 yuan at 64,810 yuan a tonne on Wednesday. Bonded copper futures for August 2023 on the Shanghai International Energy Exchange (INE) fell 30 yuan to 57,330 yuan a tonne.

On Wednesday, the trading volume of COMEX copper futures was 75,971 lots, compared with 103,117 lots in the previous trading day; the volume of short positions was 223,185 lots, compared with 220,057 lots in the previous trading day.