After hovering at five-month lows, copper prices started climbing upward as June closed, reaching monthly highs on the last three trading days and coming within shouting distance of its 2017 high of $2.78 a pound on February 13. LME copper also was trending higher toward the close of June with the cash contract selling at $5,905 per ton, well above the month’s average price of $5,699.

Most analysts are predicting further increases for copper in the second half of the year. They cite supply disruptions due to ongoing labor disputes with miners in South America and Indonesia, typical upticks in seasonal demand during summer months, and general growth in the global economy, although China’s prospects worry some.

According to the International Copper Study Group, the world refined copper balance indicates a surplus of around 165,000 tonnes  for 1Q17. This compares with a deficit of some (12,000) tonnes reported for the same period of 2016. Forecasts of continuing deficits drove up copper prices early in the year and their failure to materialize is to blame for market blues in much of the first half. A decline in Chinese demand is the main culprit. China currently represents 47% of the world’s refined copper usage.

The American Supply Association and its Industrial Piping Division is the national organization serving wholesale distributors and their suppliers in the industrial and mechanical pipe-valve-fitting industry.  As a powerful alliance of channel partners, we provide a forum for your upstream trading partners to exchange critical information and address key issues.

In particular, ASA’s IPD members constantly check the pulse of the materials and commodities they proudly supply to you. ASA’s IPD members are knowledgeable industry leaders, and those who volunteer their service on the IPD Executive Council compile and prepare the IPD Commodity Reports. The reports contain some of the most current and qualified market data and information available from the industry’s leading manufacturers and distributors about emerging trends and other price-influencing actions and events.

This information is an example of how ASA’s IPD manufacturer and distributor members are constantly looking ahead to ensure you have information and resources you need to be successful. Learn more at www.AdvanceYourAbility.com.