Copper Prices Slumped on Dampened Chinese Physical Demand

SEATTLE (Scrap Monster): Copper prices recorded decline yesterday on dampened physical demand for the metal in China- the world’s largest consumer of copper. It is quite evident from the fact that the premium for importing copper into the country has turned into a discount during the second half of the current year.

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The copper inventory in the Shanghai Futures Exchange (SHFE) warehouses touched levels of around 300,000 tons, which happens to be the highest level in almost four years. The seasonal withdrawals has been slower than usual. There has been notable dip in demand for the metal, after the prices hitting peak of over $10,000 per ton, as is reflected in high inventory levels.

The preliminary data for world copper supply and demand for the month of March 2024 indicates surplus market during the initial quarter of the current year. The March 2024 Copper Bulletin published by the International Copper Study Group (ICSG) states that refined copper market balance ended at a surplus of approximately 287,000 tonnes during this period.

The Chinese refined copper production totalled 1.14million metric tons in April this year, higher by 9.2% over the same month a year before. The average daily output was up slightly from 37,000 tons in March to 38,000 tons in April this year.