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Copper Holds Steady

Copper Holds Steady

Base metals prices on the London Metal Exchange, led by copper, are holding firm as news is released about the U.S. relaxing possible sanctions involving Russia. On Monday, the United States Treasury’s decision that it will not impose secondary sanctions on non-US market participants for doing business with Russian supplier Rusal, took some air out of the recent sanctions bubble.

Three-month copper on the London Metal Exchange saw a 0.5% bump in overnight performance. The red metal opened for trading this morning at $6,963. This after finishing up 2.33% last week.

The riff with Rusal mainly impacted the aluminum market, but the effect of the sanction ordeal is being watched by investors across all commodities, including copper.

The recent global tensions have led to stronger bond yields which has pushed the U.S. dollar index to the highest the buck has been in almost two months. This rise in the dollar typically is not good news for copper. That doesn’t seem to be the case this time.

“Copper has been supported by the seasonal pick-up in demand typically seen in China during the second quarter of the year. In addition, the tightened supply of raw materials amid China’s ban on copper scrap imports since the start of the year has also been supportive,” a Shanghai-based analyst told FastMarkets.

Digging Deeper

Could copper scrap find a niche here in the states? “There is no reason why it can’t be done, if somebody wants to make good money,” Tim Strelitz, president of California Metal-X, told Recycling Today. You can read the entire article here.

Weekly Outlook

Data released yesterday shows Japan’s core consumer price index (CPI) came in at 0.7%, slightly down from 0.8%.

Here is Investing.com’s list of significant events likely to affect the markets this week:

Tuesday, April 24

Australia is to release data on inflation.

The Ifo Institute is to report on German business climate.

The U.S. is to release data on consumer confidence.

Wednesday, April 25

Financial markets in Australia will remain closed for a holiday.

BoC Governor Stephen Poloz is to testify before the Senate banking committee in Ottawa.

Thursday, April 26

The ECB is to announce its latest monetary policy decision. The announcement is to be followed by a press conference with President Mario Draghi.

The U.S. is to release reports on durable goods orders and initial jobless claims.

Friday, April 27

South Korean President Moon Jae-in and North Korean leader Kim Jong Un are expected to hold a summit meeting to discuss de-nuclearization and a peace treaty.

The Bank of Japan is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision. The announcement is to be followed by a press conference.

Swiss National Bank Chairman Thomas Jordan is to speak at an event in Bern.

The UK is to release preliminary data on first quarter economic growth as well as revised data on consumer sentiment.

The U.S. is to publish advance data on first quarter growth.

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Jim Williams

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