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.

| More on:
happy mining worker fortescue share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Resources Shares

A man in a high visibility vest and hard hat at the wheel of a heavy mining machinery looks backwards.
Resources Shares

What this unexpected supply surge means for ASX 200 mining shares like BHP

Why is everyone talking about the big Aussie miners like BHP, Rio Tinto, and Fortescue today?

Read more »

Pile of copper pipes.
Resources Shares

If Goldman is right, these 3 ASX 200 copper stocks could surge into August

Today could be an opportune time to buy these three ASX 200 copper stocks.

Read more »

Miner looking at a tablet.
Gold

Greatland Resources shares commence trading on the ASX; Macquarie initiates coverage with outperform rating

Greatland Resources shares closed at $7.30 on their first day of trading.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain.
Resources Shares

Is the Pilbara Minerals share price set for a rebound?

The Pilbara Minerals share price hasn’t been this low since 2021. Is it time to buy?

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

The Rio Tinto share price hit a 52-week low last week, is it a buy?

Is this mining giant worth digging into?

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain.
Resources Shares

Is the Fortescue share price a buy for passive income?

Let’s dig into the potential of this mining giant.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Major miners fall as iron ore prices continue to sink

Waning Chinese demand and oversupply concerns push iron ore prices lower.   

Read more »

A mining worker clenches his fists celebrating success at sunset in the mine.
Resources Shares

Would I buy Pilbara Minerals shares?

Are investors missing an opportunity with this lithium stock?

Read more »