8-month floor copper price / influx of applicants to buy red metal
According to Tejarat News, Copper prices It was placed on the floor of the last few eight. Each ton of red metal, which peaked at $ 9,600 at the beginning of the month, fell sharply. The metal closed at $ 8280 on the London Stock Exchange last week.
In just one day, Friday, June 24, Copper prices The London Stock Exchange fell 3.5 percent to $ 297.5. This trend shows a 9% drop compared to the previous week.
As shown in the diagram below Copper prices It dropped more than $ 1,320 in less than a month. This price reduction, of course, followed the influx of applicants to buy red metal.
Falling copper prices in Iran
The red metal market in Iran did not show much resistance and Copper prices It collapsed following its global collapse. Studies show that the metal has dropped 11 percent in the past month. But the free fall has accelerated over the past week, falling about 7 percent.
Thus, in the period under review, the price of each ton of copper in Iran calmed to the bottom of $ 8325. In Iran, the demand for this metal is increasing.
Macro variables affecting copper prices
Various factors have contributed to the recent fluctuations in the copper market. Among these macro-influential variables is the continuation of the Russia-Ukraine war. Following this war, a commodity crisis arose and copper could not act as an exception. Of course, as analysts say, the shadow of this war is likely to be removed from the metals market.
The dramatic rise in inflation in developed countries and the record-breaking index in some countries also put new pressure on the market. Rising inflation has raised concerns about a slump in the metals market and a continuing decline in copper prices. Of course, these countries alleviated some of these concerns by raising bank interest rates and pushing for increased oil supply.
As much as other variables have a short-term effect, it seems that the corona root is not going to be uprooted from the markets. 2.5 years after the advent of Covid-19, the Chinese government has once again issued warnings about its return. Warnings went as far as quarantining some cities, prompting the Chinese president to say goodbye to economic growth. This trend not only minimized China’s copper purchases, but also increased the risk of global copper trading. As many other market participants are increasing Copper prices At least in the near future they show a lot of fear.
Internal shocks of the copper industry and its future
Aside from macroeconomic and political factors, the copper industry in particular has experienced several shocks. One of the influential components is the reduction of the activity of large producers in India. Chile and Peru are also likely to reduce their supply as the largest copper ore producers. Because they face the risk of nationwide workers’ strikes in protest of environmental conditions.
However, as usual, the decrease in supply should increase Copper prices Lead, but now the risk of falling demand weighs more than supply. On the other hand, the future of the copper market is largely tied to Chinese policymaking. If the world’s largest consumer of copper leaves the Covid Zero program, market participants can expect the value of copper to return to an uptrend.
This is a situation that is more or less observed in the market of other metals. The aluminum industry, for example, is going through similar conditions.
To read more about this, read the news of the fall in aluminum prices despite the reduction in supply.