Current situation:
- The Producer Price Index for copper tube and fittings was up 0.3% month-over-month (down 5.6% in the last update) and was down 16.7% year-over-year (down 16.8% Y/Y last month).
- Copper closed June 18 at $2.59 ($2.41 last month).
Key factors that could affect supply or price:
- Bloomberg headlines: “Copper’s raging bull market needs more than China.” Copper closed at $2.66, its highest level since January 24. But according to analysts, the upward trend built mainly on China’s stimulus efforts in infrastructure and construction are going to be tough to sustain unless the U.S. and European markets join the rally. Brokers have raised their price forecasts due to China, but also inventories have been substantially reduced and orders have shot up since late May. Still a big unknown is how the coronavirus spreads among copper’s biggest producers (Chile, Peru, Brazil and Indonesia).
