Current situation:
- The Producer Price Index for copper tube and fittings was up 5.8% month-over-month (down 2.8% in the last update) and was up 10% year-over-year (up 2.2% Y/Y last month).
Key factors that could affect supply or price:
Prices: Currently trading at $3.48 lb.; Oct 30 - $3.05 lb. The average price was $3.30 over the past 30 days, the highest monthly average in more than 8 years. YTD copper reached its low point on March 23 ($2.10), since then it’s up 66%.
Headlines: Analysts cite three factors driving the increase: 1) Growing optimism for an end to the coronavirus pandemic due to the rollout of COVID-19 vaccines, economic recovery and a smooth U.S. presidential transition. Strong Chinese demand (manufacturing index rose to a three-year high on Monday), also strong U.S. demand which started in June continues and has led to domestic supply disruptions with virtually all producers struggling with lower inventories, service levels and increasing lead times. Globally contributing factors and a steady supply of raw materials continue for producers (work stoppages, strikes, lower-grade ore and increasing COVID cases).
