Current situation:
- The producer price index for copper tube and fittings was down -2.8% month-over-month (up 1.5% in the last update), but was up 2.2% year-over-year (up 9.8% Y/Y last month).
Key factors that could affect supply or price:
Prices: Currently trading at $3.15 lb.; Oct 5 - $2.96. The average price was $3.08 over the past 30 days, the highest monthly average since June 2018. YTD copper reached its low point on March 23 ($2.10), since then it’s up 50%, helped by strong Chinese demand, supply disruptions, stimulus hopes and a weaker dollar.
Headlines: Opinions differ on whether copper is poised for a breakout that would see pricing above $3.30 or remaining somewhat stable with current pricing. Domestic demand has been extremely strong since June, and all producers are struggling with lower inventories and service levels. Global contributing factors to a steady supply of raw material for producers are work stoppages, strikes, lower grade ore and COVID.
