For the Quarter Ending June 2023
North America
In the second quarter of 2023, the US Copper Rod exhibited a steady price trajectory, influenced by macroeconomic factors contributing to stability. Early in the quarter, a noticeable price increase occurred following an unexpected drop in the US producer price index, alleviating downward pressure stemming from copper rod production. Supply and demand remained balanced, signaling that the US government, in the final stages of raising interest rates, intended to cut them in the ensuing weeks. However, the market situation sharply deteriorated in the latter half of the quarter, reversing the earlier price surge. The US government found itself in a challenging financial situation, with the collapse of major US banks leading to a debt crisis in the US spot market. Buyers adopted a cautious approach, focusing on demand-driven purchases, while infrastructure development and the carbon removal impact of factory electrification sustained consumption levels in the overall German spot market.
Asia-Pacific
In the Asian market, Copper Rod prices rose in the second quarter amid an optimistic atmosphere in the Chinese copper market. China's copper smelters maintained stability, coupled with steady domestic consumption levels. Some domestic warehouse delivery failures facilitated factory stabilization and a return to full capacity. Rising production costs in the Chinese spot market, driven by government agreements and policies, provided robust cost support for copper rod production. Despite lower inventory levels due to moderate production increases compared to demand, stable copper scrap supply supported the upward movement in copper prices. A slight decline occurred due to increased import tariffs, attracting attention due to the Chinese government's import subsidy policy. Economic uncertainties somewhat dampened the copper rod price as the US and Eurozone countries banned the import of Chinese goods, leading to a buildup of local stocks in China. The oversupply prompted local mills to sell excess copper rods at reduced prices, maintaining a balance between supply and demand. Market sentiment weakened, and China's spot market saw limited on-demand buying.
Get Real Time Prices of Copper Rod: https://www.chemanalyst.com/Pricing-data/copper-rod-1360
Europe
Copper Rod prices in the German spot market remained stable in the second quarter, driven by significant contributions from macroeconomic factors. A weaker US dollar provided a strong foundation for Copper Bar prices, expected to be the final move for the German exchange rate. Copper bullion stocks remained stable, and smelters operated consistently. Buyer demand for Copper rod remained stable, with purchases aligning with demand fluctuations. Simultaneously, the decarbonization and electrification of copper smelters sustained high consumption rates, supporting the stability of copper bar prices. However, economic deterioration in the latter half of the quarter led to a decline in domestic consumption, pushing the German economy into recession due to accelerated inflation. Weakening terms of trade, both locally and internationally, resulted in reduced purchasing power and increased local inventory of copper bars. In response, the German government imposed countervailing duties on cheaper copper products imported from China and Asia. The automotive industry experienced a market trend collapse, with electric vehicle sales declining, contributing to a Copper Rod oversupply. The German government aims to enhance consumption through several contracts to improve the country's economic situation.
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