Copper Pricing Hit with a “the Old One-Two Punch” 

July 8, 2019
The author says that despite the recent pounding copper prices have endured, the red metal is still standing.

Copper took a hard right to the jaw last week, thanks to another 64,025 metric tonnes (MT) of metal being mysteriously dumped into LME warehouses in just two days, apparently when no one was looking. We continue trying, without success, to comprehend how this logic defying feat is even possible. The second blow came with Friday’s job report, showing another 224,000 new positions were filled, prompting the dollar to soar, and metals to sour.

But Big Red withstood the pounding once again, and gratefully, it was back to the corner as the ref ended the round, and the week, with a ring of the bell. Remember Rocky? He learned a lot from watching copper – You can knock him down, but inevitability, he will get back up again, bigger and stronger than before.

That said, although nonferrous metals were beginning to look a bit better a week ago, the last few days took a severe toll, with copper in particular facing another acid test. Spot copper is now a bit too close to testing support right at +/- $2.63, making us nervous. Further, a breach of this line targets $2.60, and if that fails to hold the critically important prior low at $2.55, is the next target.

There is no denying that things look tenuous at the moment, but other technical indicators, to include The Copper Journal’s weekly stochastics and momentum readings tell us there is reason to believe support will hold.

As they say, “The game ain’t over till it’s over,” and right now, it’s too early to throw in the towel.

John Gross is publisher of The Copper Journal and one of the metals' industry's best resources on copper pricing trends.

If you would like to learn more about how to manage your wire and cable inventory in this volatile market environment, email John at by clicking here or calling him at 631-824-6486.

About the Author

John Gross | President

John Gross is president of J.E. Gross & Co., Inc, the management consulting firm he established in 1987. In addition to his consulting activities, Gross has worked with global leaders in the metals industry over the past thirty-five years. He began his career in metals in 1973 when he joined U.S. Metals Refining Company, a division of Amax Inc., where he rose to become manager of administration. In 1981 he joined Hudson Bay Mining and Smelting as manager of trading and in 1983 became a futures broker with Johnson Matthey, specializing in metals on Comex and the London Metal Exchange.

He joined BICC Cables Corp. in 1985, now owned by General Cable, where he became V.P. of strategic metals for their North American operations. He was also director of metals management with Scott Brass, a producer and manufacturer of copper and brass strip products.

Gross is a graduate of Hofstra University, and is a highly decorated Vietnam Veteran. He has held memberships in several trade organizations; was a director of the American Copper Council, and served as a member of the Comex Advisory Committee. He is very active in industry affairs, and has written extensively on the metal markets, industry issues.

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