Copper has slowly climbed back to April 2017 prices while stocks have stayed around 300 kT since August 2016 with a 50kT cycle.
In the absence of any major national infrastructure initiatives I do not see any significant increase in demand but there appears to be ongoing supply issues as governments in ore mining countries renegotiate export licenses, which may push prices higher in the short term. long term I still think that the LME price will fall off to nearer £ 4 / kg
Tranect Ltd will be exhibiting at the CABLEx 2017 show being held at Chester Racecourse, Chester, CH1 2LY from 9 am to 5 pm.
“All things Power Cables”: Connect with the Industry – Safely
This UK Power Cables and Jointing technologies exhibition and safety expo is a FREE “must-attend” for all pro-active Power Cables Policy, Standards and Project Engineers, Jointers and Civil Workers, Health and Safety, Procurement and Cables Transport Specialists. Plus, those who strive to make Health and Safety and in particular, Cable Jointing and associated Civil works their number one priority. Professionals from all electricity utilities, Independent Connections Providers, Rail and Wind-power industries and their contractors are also encouraged to attend.
The price of LME copper seems to have stabalised at around £ 4.50 / kg after May’s dip tp £ 4.20 / kg.
Interesting to see that LME copper stocks have recovered to over 300 kT after dropping to 240 kT during June. To me this indicates that supply is able to keep pace with demand and that we could be in a period of relative price stability with production compensating for changes in demand.
The price of copper has been holding steady since last November while stocks have jumped around, now back to where they were last November.
The price of copper is still relatively high compared to historic values so I expect the gradual decline since February to continue until copper reaches £ 4.00 / kg. Unless there are significant supply side issues or demand issues or GBP currency issues.