Copper prices saw an Rise on Friday as the dollar pulled back from a two-month high. However, the metal is poised for a weekly loss as traders assess disappointing economic data from China and concerns over potential U.S. interest rate hikes.
Net Long Positions Drive Copper’s Six-Month High on LME
Copper settled up at 723.90 yesterday, driven by net long positions on the London Metals Exchange (LME) reaching a six-month high. These positions were partly influenced by data showing low Chinese copper inventories.
On August 11, the combined stock of the SHFE & Chinese secure warehouses was 110,314 mt, a 53% YoY decrease and less than three days’ worth of consume.
The total net long position in LME copper reached 9,488 contracts on Aug. 11, marking the highest level since Feb. 10 according to the Commitments of Traders Report.
While readily available Chinese copper stocks in the spot market totaled 82,600 tonnes on Aug. 14, up 17.5% YoY, Chinese bonded warehouse inventory was down 70% from the same time last year, at 57,399 tonnes on Aug. 11.
China’s refined copper production in July increased by 14.5% YoY to 1.03 million metric tons. Daily average copper output during July stood at 33,226 tons.