Despite more than 100,000 tonnes of material freshly canceled since August 20 and on-warrant material down over 38% in the same period, three-month copper prices struggled to build significant momentum going into September.
That said, over the January-July period this year, demand for the red metal from major end-user sectors in China – the largest consumer of copper globally – has dwindled.
Of note, power grid investment, which accounts for 52% of copper demand, has fallen 16.6% on a yearly basis, while a softening in the Chinese property sector, which accounts for 8% of copper demand, added further pressure.
“After a sharp sell-off yesterday in the base metals group, we are seeing some light buying settling in, with copper and aluminum setting the pace. There is continued...