Copper rose $.05 on Monday, 8/31 to a $3.04 close, and closed over $.03 again on Tuesday, 9/1 at $3.01. Copper closed at $3.00 on 9/2, and $3.04 on 9/4.
Update, 9/8: Copper closed at $3.01
Continuing Upward Trend
We’re in the second month of a sustained upward trend for Copper. Back in March, immediately following widespread Covid-19 outbreaks and closures, Copper fell to $2.17. Since then, with essential businesses allowed to stay open to support public health and other infrastructure, then general reopenings across the country, Copper has risen steadily to this point.
With demand for Copper high, and supply limited, the market is recovering fast.
Things to Watch
Work stoppages at Copper mines, which disrupted the supply chain of raw materials to Copper Tube mills, started to recover. In the critical mines of Peru, production, which plunged 20.4% in the first half of 2020, fell only 2.2% year-on-year in July. The availability of raw materials will allow Copper Tube mills to ramp up production, increasing supply.
However, until mine output and scrap flows can meet demand, panic buyers in China are scrambling to hoard supply now. China is responsible for more than half the world’s copper consumption and the country is sucking up copper at record-setting rates. Where China has about two weeks worth of Copper stock at current consumption, compared to about one week here in the United States. Lack of supply will continue to drive cost increases.
The continued economic rebound from Covid-19 may drive copper prices up similar to the 2008 financial recovery, where Copper hit a low of $1.32 a pound in January 2009, then surged to $3.55 by April of the next year on its way to an all-time peak just shy of $4.58 in February 2011.
How Merfish United Can Help
We help wholesalers manage their risk on volatile commodity pipe products, like Copper tube. We keep our stock high, in order to maintain product availability and short lead times. This allows you to buy what you need, when you need it, freeing up your cash flow and allowing you to turn inventory more quickly. Plus, we deliver to you once or twice a week, on our own trucks with our own drivers. You can rely on us in this volatile time. With us:
- Become more competitive and manage your risk on volatile commodity products while turning inventory more quickly.
- Break bundles and take advantage of low weight minimums while mixing and matching all products pipe and electrical products.
- Buy what you need, when you need it.
- Take advantage of routine ‘milk run’ delivery routes for service once or twice per week.
Call your Merfish United representative for more information or to place orders now: 1-800-777-7473
- New Copper Tube List Price Sheet and Market Update: 8/20/20
- Our Products: Copper Tube and Coils
- Our List Price Sheets
- Our COMEX Chart
- Copper price leaps 26-month high on strong Chinese rebound, Mining.com
- Copper Prices Rally On Chinese Panic Buying, OilPrice.com
- METALS-Copper eases on stronger dollar, recovering Peru production, Reuters