MCX Copper Trend : yesterday settled up by 0.07% at 408 as the market focused on stagnating economic activity and falling demand due to the coronavirus crisis, but production cuts by major miners due to lockdowns provided support.
MCX Copper prices are still under pressure amid demand uncertainty, noting restrictions lifting outside of China have been gradual and there is a risk of a second wave of lockdowns to contain the virus.
Freeport-McMoRan’s El Abra copper mine in Chile said it would scale back copper mcx rate processing by 40% and lay off workers as global prices for the red metal plunge, the latest cut among many.
Expectations of weaker demand in the short term can be seen in the $26 a tonne discount for the cash over the three-month copper contract.China’s Ministry of Ecology and Environment approved quotas for imports of another 2,150 tonnes of high-grade copper scrap in 2020.
The China Solid Waste and Chemicals Management Bureau, part of the environment ministry, issued only 11 scrap metal quotas in its sixth round of allowances for 2020, following a much larger batch earlier this month.
