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Copper COMEX positions up 12% on week to five-month high: CFTC

https://www.chemnet.com   Jul 25,2017 Platts
Net long copper positions on US commodities exchange COMEX increased 12% to 74,143 contracts in the week ended July 18, its highest level since February, Commodity Futures Trading Commission data showed Monday.

It was the third increase in four weeks for bullish money mangers' positions, up 45% since the end of June, in line with a rise in copper prices.

Speculative investor support helped copper prices break through $6,000/mt last week on the London Metal Exchange for the first time in four months, with three-month LME contracts priced around $5,995/mt at 1000 GMT Monday.

Prices have also been supported by firm physical demand, as seen in rising European and Asian premiums, the Platts Grade A CIF Rotterdam assessment recently rising to $50-60/mt, its highest level since December 2014.

The Platts C&F premium China has increased to $65-70/mt plus LME cash in recent weeks, its highest since December 2016 and up from just $40 in April.

Data released by China's General Administration of Customs Monday showed the country imported 340,000 mt of copper waste and scrap in June, up 24% on the year and 9.8% on the month.

Over January-June, China's copper waste and scrap imports totaled 1.85 million mt, up 18.6% year on year, data showed.

Supply disruptions may have also had an impact on prices, the International Copper Study Group recently reporting a 53,000 mt global deficit in April, up from a 18,000 mt shortfall in March.

A six-week strike at BHP Billiton's Escondida mine and lower production from Codelco operations contributed to a 12% decline in production in Chile, the world's largest copper producer, in the first four-months of the year.

This contributed to a 3.5% decline in world mine supply in the first four months of 2017, according to the ICSG.

With usage down around 3% in the same period, however, the copper market reported an overall refined surplus of around 80,000 mt for January-April, up from a 185,000 mt deficit in the same period of 2016.

Additionally, recent production problems may have had a more limited impact on global copper supply.

According to Peru's Ministry of Energy and Mines, only around 4,000 out of 65,000 workers participated in nationwide strikes in the country. Peru is the world's third-largest copper producer after Chile and China.

And although 5,000 miners at Indonesia's Grasberg mine have decided to extend their strike for a fourth month until the end of August, the operators Freeport have said it has had no serious effect on production.

It prompted a note from Commerzbak Monday, in which the bank said it does not believe "the current news backdrop offers much incentive to bet on climbing copper prices."
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