China's Copper ore imports declining, but still high – Commerzbank
|The Copper price remained stable at levels above $9,600 per ton at the start of the week. However, downward pressure remains high, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
Sgns still point to expansion
"On the one hand, the inventory build on the LME has continued since the beginning of the month, indicating a slowdown in the US import pull. On the other hand, the still robust Copper ore imports of the world's most important metal producer, China, suggest that Copper production there will remain dynamic for the time being. Imports have fallen significantly from their record high in April."
"Overall, however, they are still up around 6% for the first half of the year compared to the same period last year. So far, Chinese smelters seem to be coping well with the low treatment and refining charges. The rise in the Copper price, which has improved margins, has certainly helped. Since the beginning of the year, the price traded on the LME has risen by almost 10%."
"However, as US tariffs are likely to have a price-dampening effect (outside the US), no further support is to be expected from this side. In this respect, it is questionable how profitable it is for Chinese smelters to maintain production at a high level. For the time being, however, the signs still point to expansion."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.