Chinese Authorities Investigating Use of Metals for Collateral in Qingdao

Investing.com reported that copper prices have fallen by the most in seven weeks on concerns that demand from China could be abated amidst investigations in Qingdao.

Investing.com reported that copper prices have fallen by the most in seven weeks on concerns that demand from China could be abated amidst investigations in Qingdao. According to Investing.com, the port city of Qingdao stopped several shipments of copper and aluminum last week, and authorities are currently looking into whether companies have used the same iron, copper and aluminum stocks for more than one loan.

As quoted in the publication:

US copper producer grade 110 price saw the biggest decline of the day, dropping 0.8 percent to close at $3.84 per pound on Wednesday, June 4. The price of US copper producer grade 122 saw a 0.8 percent decline to $3.84 per pound. The price of US copper producer grade 102 declined 0.7 percent to $4.03 per pound. After dropping for two days, the cash price of primary Japanese copper flattened at JPY 736,000 ($7,176).

The 3-month price of copper saw little movement yesterday on the LME, closing out around $6,922 per metric ton. The cash price of primary copper showed little movement yesterday on the LME at $7,003 per metric ton.