The Copper MMI jumped five points to 78 for our August reading, a high not seen in more than two years (the sub-index hit 79 in January 2015).
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Copper has outperformed all the other base metals this month. LME copper prices increased by 7.8% in July.
The sharp increase in copper prices came after an announcement of a possible ban of copper scrap in China by the end of the year. The increase in copper prices was accompanied by heavy volume, which may signal a stronger uptrend.
However, volumes declined during the final days of July and the beginning of August.
[caption id="attachment_87080" align="aligncenter" width="580"]
Source: MetalMiner analysis of FastMarkets[/caption]
The U.S. dollar has shown weakness since the start of 2017. The fall of the dollar during July coincided with an increase in copper prices. A weaker dollar commonly drives non-U.S. investment into commodities that are dollar-dominated (as copper is).
The U.S. dollar remains in a strong downtrend, touching lows not seen since May 2016.
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Source: MetalMiner analysis of Trading Economics[/caption]
What This Means for Industrial Buyers
Even though copper prices have increased sharply this month, a price retracement could occur some time in August or September.
Copper price dynamics, together with volumes, will provide the signals to read the short- and long-term trend correctly.
Our Monthly Metal Buying Outlook informs buyers of the precise support/resistance levels (signals) to help decide when to shift buying strategy.
Free Sample Report: Our Annual Metal Buying Outlook
Actual Copper Prices and Trends
The post Copper MMI: Metal Continues Banner 2017 appeared first on Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner.
from Metal Prices – Steel, Aluminum, Copper, Stainless, Rare Earth, Metal Prices, Forecasting | MetalMiner https://agmetalminer.com/2017/08/07/copper-london-metal-exchange-china/
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