Copper tube & fittings report: March 2019
- Still off of its 2018 June peak of $3.35, copper prices did lift from February’s $2.77 to a current price of $2.92 (a 5.4% increase month-over-month – 7.7% last month). The decade low was in 2015/2016 when the price per pound was generally under $2.00 and the 10-year high was set in 2011 at $4.50/lb.
- The producer price index for copper tube and fittings was down 1% month-over-month in February and 10.2% year-over-year.
Key factors that could affect supply or price:
- Global demand is waning amid an economic slowdown in Asia and Europe. Eight of the US’s top trading partners have seen their manufacturing sector’s slip into recession through February; 4 of the top 6 with just Canada and Mexico posting slight expansion in their manufacturing sectors in the last 30 days.
Despite this, analysts still believe that global copper demand will continue to slightly outpace global supply for the next 2-3 years, barring an extraordinary global economic event. Getting a Brexit deal will boost Asia demand, and soak up current global supply of products.
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