Worldwide slide in spot copper prices and term structures extends into August
August 1, 2024
Key Observations:
A worldwide slide in spot copper prices resumes. Rapid steepening in the CMX copper futures curve intensified today to produce a fresh one-year low in its M1-M3 price spread at -9 cents per lb. Price for the most active contract (HGU4, expiry Sep 26) has closed below $4.10 per lb. in three of the past four sessions. Equity investors and others would likely respond negatively to persistent closing prices with a three handle, if they were to occur.
Softer balance indications are also visible at the London and Shanghai exchanges. LME cash settled at $8,924 per mt today for its fifth close below $9,000 per mt in the past seven sessions. The prompt SFE copper futures price settled at 74,780 CNY per mt for its seventh consecutive close below 75,000 CNY. LME on-warrant copper stocks increased by 7kmt today to reach 239kmt.
Source: CMX, LME, SFE, Blacklight Research.
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