Current situation:
- Still off of its 2018 June peak of $3.35, copper prices did lift from February’s $2.77 to a current price of $2.92 (a 5.4% increase month-over-month – 7.7% last month). The decade low was in 2015/2016 when the price per pound was generally under $2.00 and the 10-year high was set in 2011 at $4.50/lb.
- The producer price index for copper tube and fittings was down 1% month-over-month in February and 10.2% year-over-year.
Key factors that could affect supply or price:
- Global demand is waning amid an economic slowdown in Asia and Europe. Eight of the US’s top trading partners have seen their manufacturing sector’s slip into recession through February; 4 of the top 6 with just Canada and Mexico posting slight expansion in their manufacturing sectors in the last 30 days.
Despite this, analysts still believe that global copper demand will continue to slightly outpace global supply for the next 2-3 years, barring an extraordinary global economic event. Getting a Brexit deal will boost Asia demand, and soak up current global supply of products.
The American Supply Association (ASA) and its Industrial Piping Division (IPD) is the national organization serving wholesaler-distributors and their suppliers in the industrial and mechanical pipe-valve-fitting industry. As a powerful alliance of channel partners, we provide a forum for your upstream trading partners to exchange critical information and address key issues.
In particular, ASA’s IPD members constantly check the pulse of the materials and commodities they proudly supply to you. ASA’s IPD members are knowledgeable industry leaders, and those who volunteer their service on the IPD Executive Council compile and prepare the IPD Commodity Reports. The Reports contain some of the most current and qualified market data and information available from the industry’s leading manufacturers and distributors about emerging trends and other price-influencing actions and events.
This information is an example of how ASA’s IPD manufacturer and distributor members are constantly looking ahead to ensure you have information and resources you need to be successful. Learn more at www.AdvanceYourAbility.com.
