The copper market traded up to another new high for the move during the overnight session, and in the process the market rose above the two previous day's highs. Copper appears for many traders to be finding support from ongoing gains in global equities, and also perhaps because of gains in grain prices, which may be rekindling inflationary fears for some traders. News that China was planning to close some old copper production facilities seems to have fostered hope of increased imports of copper overnight. The Chinese Trade surplus during April was $11.42 billion, much larger than expected and may provide an indicator of strong Chinese demand during the rest of the year. However, countervailing those hopes were reports that April Chinese copper product imports were down a rather aggressive 40% from the year before. Major global copper producer Hindalco suggested that high copper prices have hurt demand for copper products. On the other hand, Hindalco pegged their 4th quarter copper cathode production to be moderately above the prior quarter, which some traders feel may not point to an overly negative demand reaction to high prices. LME Copper Stocks were 468,325 tons, down 275 tons.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.