Strong demand from China, the top consumer of copper, and low global inventories pushed prices higher on Monday, 7/26, up over $.18/lb to around $4.58/lb. while holding through Tuesday afternoon.
In addition to an already tight global copper supply, floods in China have further strained copper inventories as tube and other building materials are needed for rebuilding damaged infrastructure. Due to flooding in China, disruptions to the overall copper output are expected to weigh on the global supply chain. Also, the Chinese government was planning on releasing more of its copper reserves to hold rising material prices but is now releasing less than initially planned, causing prices to jump further.
If these trends continue, we may see sustained increases and record highs of copper, or what is known as a supercycle, where demand is much stronger than producers can fulfill. This has the potential to last for decades. Click here for more historical information, and scroll down to see what a supercycle looks like over 120 years.
How We Can Help
Merfish United’s business model – which enables wholesalers to buy a broad array of pipe products from one supplier, at low minimums for FFA – is designed for low and unpredictable volume scenarios, exactly like the one we are in right now. Call your representative now to schedule your next weekly delivery of mixed-and-matched pipe products.