New York, May 11 news: Copper futures on the Chicago Mercantile Exchange (COMEX) fell for the third consecutive session on Thursday, hitting their lowest point in more than five months.
As of the close, copper futures fell by 12.95 cents to 13.3 cents. Among them, the most actively traded July 2023 copper closed at US$3.71 per pound, down 13.1 cents or 3.41% from the previous trading day. It was also the biggest one-day percentage drop since March 15.
July copper traded in a range of $3.684 to $3.8555.
As of Thursday, copper futures fell for three consecutive trading days, with a cumulative decline of 5.63%. It closed Thursday at its lowest close since Nov. 29, 2022.
Copper prices have erased all the gains made earlier in the year amid signs of weakness in China's economy and recession fears in Western economies.
U.S. data showed on Thursday that the number of Americans filing for unemployment benefits for the first time last week rose to the highest level since late 2021, suggesting that the Federal Reserve's string of interest rate hikes has begun to have an impact on the labor market.
China's imports contracted in April, while export growth slowed, data released by Chinese customs showed on Wednesday. Although China's economic growth in the first quarter exceeded expectations, the economic recovery was uneven, and economic growth was driven more by domestic consumption demand. The real estate industry, which is a major copper consumer, continued to weaken, which dampened hopes for a recovery in China's metal demand.
At present, the demand for spot copper in China is still weak. The Shanghai Yangshan copper premium fell to $21.50 a tonne on Wednesday, its lowest level since March 10, reflecting lackluster demand for imported copper in China.
The near-term COMEX copper contract is down 4.46% so far this month and 2.84% so far this year. The closing price on Thursday was still 9.93% lower than the same period last year, and 24.98% lower than the historical peak reached in March 2022. 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 June copper contract on the Shanghai Futures Exchange fell 1,930 yuan to close at 66,340 yuan a ton on Thursday. Bonded copper for July delivery on the Shanghai International Energy Exchange (INE) fell 1,810 yuan to close at 58,800 yuan a tonne.
On Thursday, the trading volume of COMEX copper futures was 151,147 lots, compared with 93,081 lots in the previous trading day; the volume of short positions was 200,164 lots, compared with 194,243 lots in the previous trading day.
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