After China took action to support its faltering stock and housing markets ahead of reports from the industrial sector, copper yesterday ended the day up 0.61% at 737.1. China’s decision to bolster its stock market by reducing stamp tax, among other measures, contributed to a more positive risk mood across financial markets.
The dollar declined as traders avoided making large wagers ahead of a series of economic reports from the United States, including the PCE price index on Thursday and the non-farm payrolls report on Friday, which might determine the direction of interest rates. In its most recent monthly bulletin, the International Copper Study Group (ICSG) reported that the global refined copper market had a 90,000 metric tonnes deficit in June as opposed to a 58,000 metric tonnes shortfall in May.
The market had a 213,000 metric tonne surplus for the first half of the year as opposed to a 196,000 metric tonne deficit during the same period last year, according to the ICSG. In June, 2.25 million metric tonnes of refined copper were produced globally, compared to 2.34 million metric tonnes that were used. According to the ICSG, the shortfall in June increased from 100,000 metric tonnes to 120,000 metric tonnes after accounting for adjustments in inventory in Chinese bonded warehouses.
