LME Cu Price Hits Yearly Low

Copper Market price at London Metal Exchange and New York Commodity Exchange renewed the yearly low on Wednesday. Copper settlement at LME declined by US$ 80.50 to $ 2,770 per tonne on Wednesday from previous day, which renewed the yearly low of $ 2,826 on 19 December. Copper spot price at COMEX dropped to US 124.75 cents on Wednesday from 125.30 cents on previous day, which renewed the yearly low for 2 straight business days.

LME inventory is increasing. The stock increased by 3,250 tonnes to 331,450 tonnes on Wednesday and became the highest since February 2004 when the copper consumption is at lower level due to the global recession. Copper smelters and fabricators, which hold the surplus ingot inventory, turn the ingot to money at financial institutions and institutions sell the ingot for future delivery, turning warehouse certificate. This liquidation makes the base metal stock increase.