The biggest user of copper, China, had poor demand, which contributed to the substantial decline in copper prices, which ended at 863.5, down -1.89%. A recovery in the dollar from its mid-March lows was prompted by soft U.S. economic data, which increased hopes for an early rate drop by the Federal Reserve.
Adding insult to injury, declining demand was exacerbated by growing copper stockpiles. 118,950 tonnes of LME copper were delivered to Taiwanese registered warehouses, marking a six-week high in inventory. A more plentiful supply of copper than merchants had previously predicted was indicated by the fact that Chinese copper inventories remained high.
There was additional pressure on the market when Indonesia decided to levy an export tax of 7.5% on exports of copper concentrate. Warehouse stocks tracked by the Shanghai Futures Exchange stayed close to four-year levels, indicating surplus circumstances, even though China’s daily production of refined copper reached record highs.
March’s worldwide refined copper market surplus was 125,000 metric tonnes, down from February’s 191,000 metric tonnes, according to the International Copper Study Group (ICSG). The global output of refined copper exceeded the global consumption, even with a minor decline in surplus, which added to the general weakness of the market.
