For the Quarter Ending September 2024
North America
The third quarter of 2024 has been a period of significant price increases for Copper Plate in North America, driven by a confluence of factors shaping the market dynamics. The surge in prices can be attributed to a combination of supply chain disruptions, including potential strikes at major ports, and production halts at key mines worldwide, tightening the global supply of copper. Furthermore, the growing demand for copper in emerging sectors like electric vehicles and AI data centers has bolstered market sentiment, driving prices upwards.
In the USA specifically, the market has witnessed the most substantial price changes, reflecting the broader trends seen in North America. The overall price increase of 5% from the first half to the second half of the quarter underscores the positive momentum in the market. Additionally, the 1% increase from the previous quarter indicates a gradual but steady upward trajectory in prices.
The quarter concluded with Copper Plate prices reaching USD 14453/MT DEL Alabama in the USA, marking a notable peak in pricing, signaling a predominantly positive pricing environment for Copper Plate in Q3 2024.
Europe
In Q3 2024, the European region witnessed a significant uptrend in Copper Plate pricing, with Germany experiencing the most notable price changes. The overall market dynamics were influenced by a combination of factors, including global economic shifts, supply chain challenges, and strong demand from key industries like automotive and construction. These factors collectively contributed to a bullish pricing environment, reflecting a positive sentiment in the market.
Germany, as a key player in the European copper market, saw prices surge by 1% compared to the previous quarter. Additionally, during the latter half of the third quarter, there was a noticeable 5% escalation in the price variance compared to the first half, showing an optimistic trend in market. The quarter-ending price for Copper Plate in Germany stood at USD 14735/MT FD-Drolshagen, highlighting the consistent upward trajectory in pricing.
The price surge in Germany can be attributed to robust demand from the automotive and construction sectors, alongside supply constraints and global economic uncertainties. This price increase underscores a positive trend in the market, signaling optimism for the future of the copper industry in the region.
APAC
The Q3 2024 period for Copper Plate prices in the APAC Region has been marked by stability, with minimal fluctuations in market values. This stability has been influenced by a combination of factors such as consistent demand from key sectors, moderate global supply levels, and overall market sentiment. These factors have created a balanced pricing environment, maintaining a sense of stability in the market. Japan, in particular, has experienced the most significant price changes during this quarter. This increase is in line with the general movement in nonferrous metals, which has been influenced by the depreciation of the dollar following adjustments to the interest rates by the U.S. Federal Reserve. The quarter-on-quarter percentage change of 3% reflects steady progression, with minimal price variations. The price comparison between the first and second half of the quarter was negligible, indicating a sustained pricing trend. The quarter-ending price of USD 12784/MT for Copper Plate (H 3100) Ex Osaka in Japan signifies a continuation of the stable pricing environment observed throughout the quarter.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Copper Plate experienced notable price fluctuations in downward compared to the previous quarter driven by a confluence of significant factors. The quarter commenced with a robust uptrend, fuelled by heightened demand from the automotive and energy sectors, specifically due to the increasing adoption of electric vehicles and advancements in renewable energy infrastructure. Supply-side constraints further exacerbated the price volatility, with global supply chains being disrupted by labour strikes and operational challenges in major copper mines.
In the USA, which witnessed the maximum price changes, the quarter was marked by a bearish trend. The overall sentiment was influenced by mounting copper inventories in global warehouses and a strong US dollar, which made copper more expensive for foreign buyers. Seasonality played a role, with price variations reflecting the cyclical nature of copper consumption in manufacturing and construction activities. Additionally, the bearish market sentiment was compounded by the Federal Reserve's indications of potential delays in interest rate cuts, thereby exerting downward pressure on commodities.
From the previous quarter in 2024, prices fell reflecting ongoing challenges in balancing supply-demand dynamics. A comparison between the first and second halves of the quarter shows a marginal decline underscoring a relatively stable yet subdued pricing environment. Despite these fluctuations, the quarter-ending price stood at USD 13,740/MT for Copper Plate (C 11000) DEL Alabama, USA. This price reflects a stable outlook towards the end of the quarter, underpinned by a cautious optimism as market participants navigate through the complexities of supply constraints and demand uncertainties. Overall, the pricing environment for Copper Plate in Q2 2024 in North America exhibited a predominantly negative sentiment, driven primarily by external macroeconomic factors and internal industrial dynamics.
Europe
In Q2 2024, the European market for Copper Plate experienced a notable upward trend in prices, driven largely by a confluence of supply constraints and robust demand dynamics. Key factors contributing to the price escalation included geopolitical unrest, labour strikes within the mining sector, and stringent mining regulations, all exacerbating supply shortages. Additionally, heightened demand from sectors such as automotive, driven by the surge in hybrid electric vehicle registrations, and infrastructure development further bolstered market prices. The European Commission's ambitious target to deploy millions of EV charging points also played a significant role in sustaining demand.
Germany witnessed the most substantial price changes in Copper Plate, reflecting a consistent increase throughout the quarter. The overall trends indicated a positive pricing environment, characterized by a steady escalation in line with seasonal demand upticks and persistent supply-side issues.
A comparative analysis between the first and second half of Q2 2024 revealed a price increase, indicative of sustained demand and limited supply availability throughout the period. The quarter concluded with the price of Copper Plate (CW008A-1 mm) FD-Drolshagen in Germany reaching USD 13946/MT. Overall, the pricing environment for the quarter was decidedly positive, driven by a combination of constrained supply channels and burgeoning demand across key sectors.
Asia-Pacific
In the APAC region, Q2 2024 has witnessed a notable upswing in Copper Plate prices, driven by a confluence of significant factors. The quarter has been marked by a resurgence in demand from key sectors such as automotive and infrastructure, which have been pivotal in sustaining price elevations. The global supply chain disruptions have exacerbated this trend, creating a supply-demand imbalance that has further propelled prices. Additionally, the escalating costs of raw materials and energy have contributed to the upward pressure on Copper Plate pricing. Investment fund activities and speculative trading have also played a crucial role, with heightened buying activity stemming from optimistic future demand expectations and anticipated supply shortages.
Focusing on Japan, which has experienced the most significant price changes, the overall trends reveal a steady increase influenced by seasonal demand peaks and underlying economic indicators. The seasonality factor, particularly with the onset of construction projects and industrial activities, has synchronized with the uptrend in prices. The correlation between supply constraints and robust demand has reinforced this pricing environment. From the same quarter last year, prices have surged reflecting a stable yet persistent growth trajectory.
Furthermore, the first and second half of the quarter saw a comparative price increase indicating consistent upward movements throughout the period. The latest quarter-ending price stands at USD 12666/MT for Copper Plate (H 3100) Ex Osaka in Japan, signifying a bullish sentiment. This analysis points towards a positive pricing environment for Copper Plate in the APAC region during Q2 2024, underpinned by robust demand and constrained supply dynamics.
For the Quarter Ending March 2024
North America
The pricing environment for Copper Plate in the North America region during Q1 2024 was characterized by a consistent decrease in prices. Several factors contributed to this downward trend. Firstly, there was an abundance of available inventories in the spot market, leading to a surplus of supply.
Additionally, the strength of the US dollar exerted downward pressure on prices. Furthermore, market confidence was dampened by a court decision approving a land swap for a major copper mine, creating uncertainty among buyers, and resulting in cautious purchasing behaviours. The quarter-ending price for Copper Plate (C 11000) DEL Alabama in the USA was recorded at USD 13420/MT, reflecting the overall decreasing sentiment in the market.
In summary, the pricing environment for Copper Plate in the North America region during Q1 2024 was negative, with prices experiencing a consistent decrease. Factors such as surplus supply, the strength of the US dollar, and market uncertainty contributed to this downward trend. The United States saw significant price declines compared to both the previous quarter and the same quarter last year.
APAC
The first quarter of 2024 has been relatively stable for Copper Plate pricing in the APAC region. Significant factors influencing market prices include the demand from downstream sectors, supply levels, economic uncertainties, and government initiatives. Overall, the pricing environment has been stabled with moderate demand and supply. In Japan, decrease in prices of copper plate can be attributed to reduced demand from the automotive industry, intensified competition from China, and a decline in Japan's manufacturing purchasing managers' index. However, companies like Toyota and other members of the Japan Automobile Manufacturers Association continue to innovate in the electric vehicle and alternative powertrain sectors. In terms of seasonality, the first half of the quarter saw stable prices, while the second half experienced a slight decline of 0.5%. This decline can be attributed to economic uncertainties affecting purchases from Europe and the USA, leading to increased supply in the Japanese spot market. Overall, the pricing environment for Copper Plate in Japan during the first quarter of 2024 has been stable, with moderate demand and high supply levels. The latest quarter-ending price for Copper Plate (H 3100) Ex Osaka in Japan is USD 11853/MT.
Europe
In Q1 2024, the European market for Copper Plate experienced an overall positive pricing environment, with prices increasing steadily throughout the quarter. Several factors influenced market prices during this period. Firstly, there was a surge in demand from various industries, such as automotive and construction, which drove up prices. Additionally, the ongoing global economic recovery and increased infrastructure spending contributed to the increased demand for copper, further supporting the upward trend in prices. Germany witnessed significant price changes for Copper Plate during this quarter. The country experienced a strong rebound in its automotive sector, leading to a surge in demand for copper. This, coupled with improved construction activity, resulted in a higher demand-supply gap, which pushed prices higher. Overall, the pricing trend for Copper Plate in Q1 2024 exhibited a positive correlation with improving market conditions. As the quarter ended, the price of Copper Plate (CW008A-1 mm) FD-Drolshagen in Germany stood at USD 13665/MT. This reflects the overall positive pricing environment and the increasing demand for copper in the European region.
For the Quarter Ending December 2023
North America
The North American Copper Plate market navigated the fourth quarter of 2023 with a resilient steadiness, exhibiting minimal fluctuations. Market demand remained stable, showcasing the industry's resilience amidst evolving economic conditions. Despite external challenges, the supply chain demonstrated robust adaptability, contributing to the overall market equilibrium. Geopolitical considerations introduced an element of caution but did not disrupt the underlying stability.
The United States played a pivotal role, maintaining a strategic balance in pricing dynamics with a marginal -2% quarter-on-quarter adjustment. This minor percentage change underscored the market's ability to withstand external pressures and maintain a consistent trajectory.
As the quarter concluded, Copper Plate (C 11000) DEL Alabama in the USA stood at USD 16,732/MT, reflecting the market's steadfastness amid minimal adjustments. This summary offers a nuanced perspective on the North American Copper Plate market, emphasizing its resilience and stability during the closing quarter of 2023.
APAC
The fourth quarter of 2023 unfolded with distinctive dynamics in the APAC Copper Plate market, marked by three key factors shaping pricing intricacies. First and foremost, market demand witnessed a nuanced ebb, moderating overall pricing trends. Secondly, logistical challenges in the supply chain heightened pricing pressures, disrupting the delicate equilibrium. Lastly, geopolitical uncertainties introduced an element of unpredictability, further influencing pricing dynamics. Amidst these intricacies, Japan emerged as a focal point, experiencing significant price fluctuations. A comprehensive analysis of Japan's market revealed notable trends. Top reasons behind these shifts encompassed fluctuating demand, supply chain challenges, and geopolitical influences. As the quarter concluded, encapsulating the intricate dance of market forces, geopolitical intricacies, and industrial demands, encapsulating intricate market nuances and geopolitical influences, providing a comprehensive snapshot of the Q4, 2023 Copper Plate pricing landscape in the APAC region.
Europe
The fourth quarter of 2023 unfolded a distinctive narrative in the European Copper Plate pricing arena, marked by nuanced dynamics that reverberated throughout the market. Concurrently, an unprecedented surge in demand fueled by expansive infrastructure projects and robust manufacturing activities exerted considerable influence on pricing dynamics. Within this intricate tapestry, Germany emerged as a pivotal player, navigating notable fluctuations fueled by heightened demand, geopolitical recalibrations, and supply intricacies. A closer examination of the year-on-year scenario revealed a 4% shift, a testament to the market's adaptability amid evolving conditions. Quarter-on-quarter dynamics portrayed a -5% adjustment, reflecting the dynamic nature of market forces. Delving into the halves of the quarter unearthed a 6% differentiation, shedding light on temporal market shifts. The paramount reasons underpinning these fluctuations included disruptions in the supply chain, escalating demand pressures, and geopolitical uncertainties, offering a multifaceted understanding. As the quarter reached its denouement, the pricing denouement materialized with Copper Plate (CW008A-1 mm) FD-Drolshagen in Germany standing at USD 13,307/MT. This figure encapsulates the intricate dance of market forces, geopolitical intricacies, and industrial demands, providing a comprehensive glimpse into the European Copper Plate pricing landscape in the closing quarter of 2023.
For the Quarter Ending September 2023
North America
In June 2023, the USA's Copper Plate market remained stable due to consistent supply from overseas mines in Peru and Chile and stagnant demand from electrical and automotive industries. Prices stayed steady as cautious buyers and local manufacturers maintained price ranges. Inventory levels, supply, and macroeconomic factors like interest rates played a role in market dynamics. The automotive sector, reliant on Copper Plates for electric vehicles, saw stable demand but faced price limitations due to interest rate considerations. July saw a price increase driven by rising demand, reduced inventory, and a weaker US dollar. The renewable energy and automotive industries fueled this rise, but prices fell by the end of July as demand waned and local inventory increased. In August, the strengthening of the US dollar and global inflation pressures caused a price decrease. Challenges in China's construction sector and factors like the Inflation Reduction Act limited demand. Falling copper prices in the US market resulted from decreased demand, global economic conditions, and interest rates and housing starts. Stability was expected in the near term, but some downstream industries engaged in stockpiling. Overall, the US Copper Plate market exhibited stability influenced by demand, supply, interest rates, and global economics.
APAC
In the third quarter of 2023, the price of Copper Plates in Japan remained stable, primarily due to the country's ongoing economic recovery and stagnant demand in both the local and international markets. Factors contributing to this stability included an increase in raw material inventories, which exerted downward pressure on copper prices. Raw copper prices in the US fell due to higher production from foreign mines in Australia and Indonesia, and declining coal and electricity costs created a sense of pessimism in the market. Moreover, the downstream consumption of copper remained unchanged, resulting in an oversupply of Copper Plates. Competition from China's electric vehicle industry in the automotive sector also influenced market dynamics. Additionally, the US Federal Reserve's interest rate hike contributed to a cautious approach from both domestic and foreign buyers. Although the Japanese steel plate market showed potential for growth in response to increasing demand in the automotive and battery sectors, the overall global economic conditions, particularly in the US and Eurozone, remained weak, impacting global import demand for copper. Considering these factors, the price of copper sheets in the Chinese spot market continued to decline due to reduced demand in both the automotive and construction industries.
Europe
During Q3 2023, the German Copper Plate market remained stable, primarily due to consistent inventory levels and weak demand from downstream sectors, particularly in the electrical and automotive industries. Despite stable electric vehicle sales, the automotive sector experienced sluggish demand. However, steady demand from the renewable energy sector led to a minor increase in manufacturing and infrastructure projects, resulting in a slight rise in copper prices. Concerns over rising interest rates made buyers cautious. Copper supply remained moderate, with local mills running consistently and demand from the electrical sector helping maintain price stability. Nevertheless, the automotive and construction sectors exhibited flat demand, impacting price dynamics. Global factors like interest rate hikes, weak demand, and automotive competition further influenced the market. Government policies related to infrastructure and energy upgrades, coupled with a wait-and-see approach, shaped copper demand. The German government's stimulus package, aimed at supporting the construction and housing sectors affected by high interest rates and increased costs, further influenced market dynamics. In summary, the German Copper Plate market displayed stability, with various factors influencing price trends.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the US Copper Plate showed a stagnant price trend amid macroeconomic factors playing a major role in its stability. In the initial phase of Q2, the price rise was observed as there was an unexpected decline in the Producer Price Index in the USA which lifted some downward pressure from the copper plate manufacturing. The supply demand rate was stable which indicated that the US government in end phase of interest rate hike and were going to decline it in upcoming weeks. Meanwhile, the market condition in H2 of the second quarter drastically declined, which withdrawn the price hike from the first half of the quarter. In the later half, the US government faced a depriving economic condition in the second quarter as the downfall of several major banks across the USA created a debt crisis in the US spot market. The buyers then remained on a wait and watch basis and the purchasing rate was centered over need on demand basis. The downstream infrastructural development along with the decarburization effect for electrification of various mills kept the consumption rate stable across German spot market.
Asia- Pacific
The Asian market showed an increasing price trend for Copper Plate in the second quarter as the Chinese copper market experienced an optimistic market sentiment. In China, the copper smelting mills were performing at a firm rate amid stable domestic consumption rate. The supply disruption across a few domestic warehouses gave the chance to stabilize the mills and return them to full capacity. By different government deals and policies, the production cost rises in the Chinese spot market that provided a strong cost support to produce Copper plate. The inventory level was maintained at a bit lower edge as the manufacturing activity didn’t hike as much as the demand surged. The supply of Copper scrap remained stable that helped in northward momentum for copper prices. The slight decline was observed amid increased import rate as the cargo shipment were more attracted due to the import subsidy policies provided by the Chinese spot government. The uncertain economic condition somewhat dampened the price of Copper Plate as the overseas US and countries inside Eurozone have banned import of Chinese origin commodities including copper plate, which led to an increase in local Chinese inventory levels. The oversupply in China provoked the local mils to sell Copper Plate in surplus amount at a cheaper rate to maintain the supply- demand gap. Meanwhile, the buyers were shying away from placing large orders as the market sentiment got bearish and there was only on-demand purchase across Chinese spot market.
Europe
The price of Copper Plate remained stable in the second quarter in the German spot market as the macroeconomic factors played a major role in its stability. The weakening of US dollar provided a strong fundamental for price of Copper plate and presumed to be the last phase for reduction in interest hike across Germany. The copper Plate supply remained stable as the copper smelting mills were performing at a firm rate. The demand for Copper plate was steady from buyers’ side as the buyers remained in a wait and watch situation and the purchase was on demand basis. Meanwhile, the decarburization and electrification of various copper smelting mills kept the consumption rate high and promoted the stability in copper plate prices. The domestic consumption rate was on a lower edge as the economic condition worsened in the H2 of Q2. The German economy went into recession amid consistent increase in inflation rate. The trade conditions dampened as the economy declined in the local as well as overseas markets. The purchasing ability of consumers decreased that led to a surge in the local inventory level for Copper Plates. This provoked the German government to impose countervailing duties over import of cheaper copper products from overseas Chinese and Asian market. The downstream automotive industry showed a plunging market trend as the electric vehicles sales declined leading to oversupply of Copper plate. The German government is planning to sign various deals to uplift the consumption rate of Copper Plates along with uplifting the economic condition of country.
For the Quarter Ending March 2023
North America
In Q1 2023, Copper Plate prices in the US market rose due to an increase in downstream construction and machinery inquiries amidst the banking sector's turmoil. Buyers opted for long-term contracts to meet their needs, avoiding the relatively quiet spot market. However, market participants cautioned about potential supply disruptions due to protests in Peru and a planned outage at the Kennecott smelter in Utah, USA. The delayed shipments from Peru and Chile led to an increased interest in acquiring copper scrap, but the existing supply and demand balance kept US premiums stable. The failure of Silicon Valley Bank had a modest impact on copper prices, and the US Federal Reserve's interest rate hike in March had little influence. Market sentiment returned to neutral after the panic subsided. Due to the liquidity strain on several US banks, the US Fed appears unlikely to tighten monetary policy much in the medium and long term. Consequently, the Copper Plate (C 11000) prices for Ex Alabama and FOB Alabama Port were fixed at USD 16884/MT and USD 16957/MT.
Asia Pacific
During Q1 2023, Copper Plate prices in the Chinese market witnessed an uptrend due to the surge in Copper futures and a balanced market with limited global copper stocks. According to market players, Copper began the New Year on a positive note, with funds returning to the market in anticipation of China's rapid exit from a year of lockdowns. However, many small and medium-sized cable enterprises downstream closed for the Spring Festival holiday in January due to the epidemic situation and off-season consumption. With no apparent improvement in consumption, downstream replenishment remained weak, and spot market transactions were scarce. As Q1 progressed, terminals, processing plants, and downstream businesses resumed production, and orders for Copper plates increased. As the country entered a seasonal peak consumption season, demand rose, and sellers prioritized the delivery of long-term orders. In the face of high Copper prices, downstream companies adopted a wait-and-see approach. Copper prices increased as market expectations for domestic consumption recovery improved, but the rise in the US index limited Copper price gains to some extent. As a ripple effect, the Copper Plate (C 12000) prices for Ex Qingdao settled at USD 8280/MT.
Europe
The European market witnessed a rise in Copper Plate prices during Q1 2023, attributed to high demand for refined Copper, low inventory levels on all three exchanges, and a rise in raw material prices during the banking turmoil. However, some buyers are avoiding Russian Copper due to heavy stocking in futures warehouses. Europe's tight supply, uncertainty in demand, and record-high annual contract prices are likely to affect the spot market. Copper prices, which are an economic indicator, were affected by the recent rout in global markets due to the collapse of Silicon Valley Bank and Credit Suisse. Producers warn that price volatility due to diminished inventories poses challenges for traders, producers, and consumers. The recent surge in orders was due to the significant drop in copper prices rather than an increase in actual demand from end-users. Buyers reported a continued downward trend in inventories compared to 2022. Thus, the Copper Plate (CW008A-1 mm) prices for Ex Drolshagen and FOB Hamburg are fixed at USD 14100/MT and USD 14281/MT.
For the Quarter Ending December 2022
North America
In the final quarter of 2022, the Copper Plate prices showcased a rising trend in the US market, despite rising interest rates and a mixed downstream demand outlook. Copper prices fluctuated due to fears of a global recession as inflation in North America reached double digits in Q4. The supply outlook remained bleak in October, as lower prices were insufficient to spur new manufacturing investment. According to buyers, copper prices rose in mid-Q4 alongside global stock markets as investors believed that central banks would slow the pace of interest rate rises, and the dollar fell, making dollar-priced commodities less expensive for buyers using other currencies. In the absence of any changes in the base metals that indicated a continuation of sideways movement, the copper plate market remained uncertain amid global conflicts and the US midterm elections. Buyers reported that the physical trade had been extremely quiet and would continue to be so until the end of the year. As a result, domestic buyers chose to adopt a conservative approach. Thus, the Copper Plate (C 11000) discussions for Ex Alabama (USA) settled at USD 12383/MT.
Asia Pacific
Copper Plate prices climbed in an upward direction in the Chinese market in the fourth quarter of 2022, despite easing current macroeconomic pressures, with solid support from both the supply and demand sides. Copper concentrate supply in China increased insufficiently in October, and downstream enterprises feared higher prices, limiting the rise in copper prices. The possibility that the LME would ban Russian metals boosted copper prices. The epidemic reduced the operating rates in both North and South China. Consumers were becoming incompetent to support rising prices, and the supply-demand gap widened in mid-Q4. The new production capacity was put into service, but the supply pressure delivery rate was slower due to maintenance and equipment transformation disruptions. After China's pandemic control measures were relaxed at the end of the fourth quarter, market participants became increasingly concerned about the demand outlook. Imported and domestic copper arrivals were limited, and downstream firms increased their purchases in December. The New Year was approaching, and an increase in the number of COVID-19-infected patients had curtailed downstream companies' operating rates in half, suppressing demand. As a result, the Ex Qingdao (China) Copper Plate (C 12000) prices are fixed at USD 7733/MT.
Europe
In the European market, Copper Plate prices increased in the fourth quarter of 2022, and the currency strengthened amidst hawkish comments from US Federal Reserve officials. Despite production difficulties in mid-Q4, the threatened supply situation was not reflected in Copper Plate prices. The supply outlook remained bleak because the low prices did not sufficiently stimulate new production. With the exception of a few large mines in Chile and Peru, the market experienced little expansion. Copper Plate prices were expected to be volatile if Western nations or the London Metal Exchange imposed restrictions on Russian-produced metal. However, the LME did not impose a ban on Russian-origin products. According to market participants, a stronger dollar increased the cost of the greenback-priced metal for buyers holding other currencies. Furthermore, global copper stocks fell to record lows, with current inventories only enough to meet global demand for a few days and shortage risks that did not reflect the physical market's tightness. A series of planned and unplanned smelter shutdowns in South America and Europe have exacerbated the impact of increased supply on treatment charges this year. Thus, Copper Plate (CW008A-1 mm) prices for Ex Drolshagen settled at USD 12653/MT.
For the Quarter Ending September 2022
North America
In the North American market, Copper Plate prices witnessed an up-swinging trend in the third quarter of 2022. According to market participants, the LME copper price rose weekly, approaching $8,000 per tonne. However, the Federal Reserve's hawkish stance hampered the demand outlook in August, outweighing supply risks. With Chile's Codelco becoming the latest major producer to cut output guidance, the worsening sentiment on Copper Plate demand took precedence over further signs that supply is under threat. Copper Plate prices have been supported by ongoing supply bottlenecks at several mines across the United States and Chinese authorities cutting interest rates. In conjunction with rising European energy prices, the US Inflation Reduction Act has prompted several investors and manufacturers to invest in renewables as soon as possible before energy prices skyrocket, thereby increasing copper demand. Therefore, the discussions of Copper Plate (C 11000) prices for Ex Alabama (USA) settled at USD 15130/MT.
Asia Pacific
Copper Plate prices fell by more than 10% during the third quarter of 2022 due to falling raw material costs. According to market participants, even though input costs are declining, inflationary concerns remain firm, and the manufacturers implemented cost-cutting measures to help the margin rise. According to market participants, the benefits of softening raw materials may be visible in the coming quarters. Copper prices rose in August after data showed that inflation in the United States was lower than expected, raising hopes that interest rate hikes would be less aggressive and alleviating fears of a recession. Copper prices rose as investors worried that stoppages caused by high energy prices or other disruptions would lead to shortages. However, because they are essentially refiners who import copper concentrates due to limited access to mines, the profitability of Indian copper players is less dependent on metal prices. As a ripple effect, the Copper Plate (C 12000) prices for Ex Qingdao settled at USD 7905/MT.
Europe
Copper Plate prices in Germany increased in the third quarter of 2022. According to the Federal Statistical Office, inflation in Germany rose again in August after falling slightly in June and July due to short-term government programs to reduce consumer burdens in the transportation sector. The European Central Bank has raised interest rates to combat the eurozone crisis. If the price remains below the marginal cost for an extended period, some producers may be forced to close their plants. However, as investors became more cautious, global equities fell, and the US dollar rose, putting pressure on dollar-priced metals by making them more expensive to buyers using other currencies. Funds have been amassing short positions in anticipation of a recession. Some investors bought put options, which give the holder the right to sell copper at a specific price on a particular date. Thus, the Copper Plate (C 11000) prices for FOB Bremen (Germany) dropped to USD 13360/MT.
For the Quarter Ending June 2022
South America
In Chile, the Copper Plate prices witnessed a declining trade during the second quarter of 2022. According to market participants, declining Chilean production and conflict with local communities near copper mines in Peru have exacerbated supply concerns. Due to droughts in Chile's Antofagasta and Atacama regions, manufacturers are forced to use seawater and desalination plants. Exchange warehouses, where supplies of copper metal are limited, provide some relief. Furthermore, Codelco, a Chilean state-owned copper mining company, announced that it would close its Ventanas smelter, which had been closed for maintenance and operational adjustments following a recent environmental incident that sickened dozens in the region. Meanwhile, China's strict "zero-covid" policy of constantly monitoring, testing, and isolating its citizens to halt the spread of the coronavirus has harmed the country's economy and manufacturing sector.
Asia Pacific
In the Chinese market, the Copper Plate prices witnessed declining sentiments during the second quarter of 2022. Due to the ongoing domestic epidemic in April, market demand was weak, disrupted logistics transportation was in many places, and downstream processing firms' operating rates were significantly lower. In May, US stocks fell, the US dollar index rose, and investors were concerned about global stagflation. Furthermore, the current domestic epidemic continues to drag down copper consumption, and market sentiment is pessimistic. The low global copper inventory has weakened copper prices' support. Fundamentally, concentrate supply is adequate, spot processing costs are stable, and demand is muted.
Europe
In the European market, the Copper Plate prices declined due to the muted demand and limited transactions in the regional market amidst the inflationary pressure and supply snarls. As per market players, the elevated US inflationary pressure has bolstered the case for the Federal Reserve's aggressive stimulus to rein in price coercion, heightening concerns of a recession. The administrators are striking an increasingly hawkish tone, rattling risk assets across markets. Traders cite that recession worries pummel the prices. In the mid-second quarter, inflation and supplies are still tight. But Copper prices are plummeting as worries about a downshift in industrial movement across major economies dovetail with slumping demand in China. At the same time, the European Central Bank lifted its inflation forecast at the June meeting and intended to start a gradual and sustained interest rate hike. The hawkish signs put pressure on the assets.
For the Quarter Ending March 2022
South America
In South America, the Copper Plate witnessed an inclining trend owing to increased demand from the downstream sector amidst the Russia-Ukraine war. Additionally, Peru's government has put ambiguous taxes on the mining activities in the country since 2021, drawing fierce protest from the local miners. According to domestic players, Peru's current benefit from mining taxes is nearly 50%. Meanwhile, it is approximately 41% in Chile. Peru's administration is still focused on surplus profits. Despite fundamental objectives, domestic market players in Peru are less ambitious about the new push in the market. Additionally, market players expect Copper Plate prices to showcase a marginal increase in trend due to inventory depletion and supply shortage. However, the demand for Copper is expected to be stable this year.
Asia Pacific
Copper Plate prices in Asia-Pacific increased in the first quarter of 2022. In the context of the ongoing Russia-Ukraine conflict, raised LME cash prices essentially support this inflationary expansion. With a weekly marginal gain of 0.80 percent, LME cash prices settled at $10,400/tonne. Hindalco, India's largest copper miner, had its production fall by roughly 12% in February compared to January. Hindalco's annual production has also reduced by about 5.14 percent. Furthermore, in China, a more brutal COVID control policy in Shanghai briefly hampered Copper's industrial activity and the supply chain, which further provoked tight supplies and sliding inventories. As a result, Chinese copper scrap prices increased by 3.4 percent per metric tonne. Across the middle of this, Peru's government has implemented ambiguous mining taxes in the country. Despite primary targets, the domestic market players in Peru are less ambitious about the new push in the market. As a ripple effect, the Copper Plate (C110/B5) prices for Ex Mumbai (India) settled at INR 834500/MT.
Europe
Copper Plate prices in Europe remained high in the first quarter of 2022, with the Copper Monthly Metals Index (MMI) rising 3.5 percent month over month and remaining in a tight trading range. A global supply constraint caused by the extended hostilities between Russia and Ukraine resulted in a two-fold impact on the Copper market. Furthermore, substantial price swings encouraged industrial clients to purchase opportunities owing to the unanticipated danger of storing inventories. On the other hand, traders utilized this range to scalp prices, which means they took short positions to profit from Copper's price volatility. As a result, industrial buyers face risk and are reluctant about whether to hedge or cut back on their acquisitions.
