Copper prices experienced a slight rise on Friday, yet they remained relatively consistent for the quarter. Factors like increased stockpiles and a robust dollar mitigated gains seen in July.
On the London Metal Exchange, three-month copper prices showed a 1.2% increase, reaching $8,316 per metric ton.
However, over the month, copper contracts had declined by 1.3%, following a substantial 4.6% fall in August, nearly offsetting July’s 6.2% rise. Remarkably, copper inventories in the London Metal Exchange saw a striking 141% increase this quarter, reaching 167,825 tons, marking the most significant quarterly surge in 18 years.
Concurrently, the dollar index rose by 2.7% during the same period, its most robust quarterly performance in a year.
The recovery of China’s economy fell short of expectations, impacting the demand for metals. Especially due to challenges in the property market. While some sectors in China performed well, doubts about the recovery’s sustainability persisted, reflecting in unexciting local financial markets.
Sandeep Daga, a director at Metal Intelligence Centre, highlighted that recent metal price hikes were a correction of overly negative views about China.
However, he cautioned against interpreting this upward movement as the beginning of a significant trend. The Shanghai Futures Exchange was closed for public holidays and is set to reopen on October 9.