ASX copper shares up and down as copper price bounces back

The price of copper recovered overnight while China’s attempts to cool it have flopped for the time being.
The post ASX copper shares up and down as copper price bounces back appeared first on The Motley Fool Australia. –

The price of copper is trending upwards again, as China’s release of stockpiled metals proved smaller than expected.

Copper’s value gained 1.7% overnight, after it tumbled last week.

However, at the time of writing, it has fallen 1.15% since 10am this morning. This leaves it 0.23% higher than it was this time yesterday.

Currently, a tonne of copper is valued at US$9,376.75 on the London Metal Exchange.

How ASX copper shares are performing today

Like the copper price, ASX listed large-cap copper shares have been bouncing around today amid wider market falls.

Currently, the S&P/ASX 200 Index (ASX: XJO) is down 0.24%. Meanwhile, the All Ordinaries Index (ASX: XAO) is down 0.02%.

The ASX 200’s only pure-play copper company, Oz Minerals Limited (ASX: OZL) has spent a decent portion of today in the green, despite currently having slipped into negative territory. The Oz Minerals share price opened lower this morning before jumping more than 1% to an intraday high of $22.95. At the time of writing, however, the company’s shares are trading 0.75% lower at $22.55.

Meanwhile, shares of Sandfire Resources Ltd (ASX: SFR), the second-largest ASX copper producer by market capitalisation are rising today. Right now, the Sandfire Resources share price is trading 1.63% higher than its previous close.

What’s driving the price of copper?

According to reporting by South China Morning Post, China will sell 20,000 tonnes of copper from its reserves to the market. The metal will go to auction online on 5 July and 6 July.

The news seems to have bolstered confidence in copper, as the market apparently expected a larger amount of the red metal to be released.

This is Beijing’s latest attempt to curb a surge in commodity prices. It will also be releasing 50,000 tonnes of aluminium and 30,000 tonnes of zinc, also to be auctioned.

As The Motley Fool has previously reported, China consumes 50% of the world’s refined copper. If China were to release large amounts of copper from its stockpiles, global demand for the commodity would likely wane and its price would fall as a result.

The price of copper has gained around 21% since the start of 2021. It has also fallen roughly 12% since it hit its record high price of US$10,746 per tonne in May.

The price of commodities – including copper – fell recently after the US Federal Reserve indicated that interest rates could rise sooner than anticipated, strengthened by the US dollar. At the same, rumours of China’s plans to release stockpiled metals were swirling.

The post ASX copper shares up and down as copper price bounces back appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

ASX 200 down 0.25%: Woolworths sinks, Afterpay jumps, Westpac NZ update

5 things to watch on the ASX 200 on Thursday

These 3 shares are the best performers of the ASX 50 so far in 2021

ASX 200 down, Woolworths falls, Costa acquires more farms

Here are 3 ASX 200 shares that are on the move today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!