Current situation:
- The producer price index for copper tube and fittings was down 2.8% month-over-month (down 3.9% in the last update) and was down 5.4% year-over-year (down 8.6% Y/Y last month).
- Prices (lb): 1 year ago - $2.84; 6 months ago - $2.80; 90 days ago - $2.77; August 8 - $2.58; 12 month price range $2.97 high - $2.54 low. The $2.54 price reached on August 5 was the lowest level since July 2017.
Key factors that could affect supply or price:
- 1) U.S. - China trade deal hopes have dimmed in recent weeks; 2) weaker demand across the globe.
Factors that could cause a move upward in pricing include:
- 1) Copper mines are dealing with anti-mining protests that are disrupting normal business operation; 2) the U. S. claimed victory last year in the long-running Boeing Airbus trade case which could result in tariffs approaching 100% on many copper products coming from the EU (to see a listing of affected products, search metal miner Boeing airbus trade case).
- It appears that analysts are still betting on lower prices or at the very least flat pricing short term.
