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This morning in metals news, the Kobe Steel saga continues, an Indian steel firm’s stock is up amid acquisition buzz and London copper holds steady.

Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up

Kobe Steel Faces Another Test

The fallout from Kobe Steel’s quality data falsification scandal continues, and according to Reuters there are concerns about the Japanese firm’s outstanding liabilities.

According to the Reuters report, the third-largest Japanese steelmaker has $3.3 billion cash in hand and $7.01 billion in debts as of the end of March.

Bhushan Steel Stock Surges

Indian firm Bhushan Steel saw its stock rise after news of a potential acquisition by ArcelorMittal, according to the Economic Times.

The Indian company’s stock rose 20% Monday amid buzz that ArcelorMittal joined the bidding, according to the report.

Copper Trades Steady

Copper has experienced a significant upward trend in October, rising from $6,518 on Sept. 20 to $7,008 on Oct. 20.

The metal did experience a dip last week, however, falling from $7,061 last Monday to $7,008 on Friday.

Free Download: The October 2017 MMI Report

On Monday, copper held steady, according to Reuters, trading at $6,950.


Windsor/Adobe Stock

Copper prices bolstered their previous rally with a second sharp price increase this month. Trading volumes remain strong, albeit lower than the previous price spike.

Copper prices breached the $7,000/metric ton level, trading again at 2015 levels. The price breach is relevant, as copper prices have passed the previous peak in September.

Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up

Source: MetalMiner analysis of FastMarkets

Copper prices retraced during September, falling by 4.6%. After the last copper price rise, copper prices increased by 9.4% this month. As the uptrend appears sustainable, we could still expect more upward movements for copper.

Besides strong trading volumes and bullish prices, macro indicators also now support copper prices.

According to the International Copper Study Group (ICSG), copper faces a  75,000-ton deficit. The global copper supply has barely grown this year.

Meanwhile, Chinese demand remains strong. According to the Chinese Customs Department, Chinese copper imports rose by 430,000 metric tons in September. Copper imports increased by 26.5% on a year-to-year basis. The Chinese copper appetite also extends to copper concentrates, in which demand increased by 0.1 million metric tons this year.

Some analysts are calling copper “The Metal of the Future.” Copper demand will increase due to battery electric vehicles (BEVs). China serves as the world’s largest BEV market and appears to be  the most profitable one, too. According to Financial Times, Beijing has plans to reduce (and even ban) fossil fuel vehicles. Thus, demand for copper from BEVs will increase.

Industrial Metals Complex

The bullish trend applies not only to copper, but also for the base metals complex, in general. The DBB index remains in a clear uptrend. Both the short- and long-term trends suggest that base metals (and copper) remain bullish, and buying organizations may expect continued upward price movements.

Source: MetalMiner analysis of StockCharts

Free Download: The October 2017 MMI Report

MetalMiner recently published its free 2018 Annual Outlook that covers copper price trends, as well as an industry outlook (and all the other base metals and steel forms). Understanding how to react to price changes is vital in a bullish market.