United States major copper scrap commodities prices remained almost flat on Wednesday, while copper futures prices at New York Mercantile Exchange advanced as investors locked in profits on bets against the metal a day after China's currency devaluation sparked sharp declines.
As per Scrap Register Price Index, major copper scrap commodities like #1 ins wire (cu 88-92%), ins wire (cu 58-62%), al/cu radiator ends, alternator, bare bright (cu >99%), copper scrap, cu transformer large, cu transformer small, electric motors, enameled copper wire, no. 1 copper (cu 96-98%), no. 2 copper (cu 94-96%), no. 3 copper (cu 88-90%), sealed unit, starter, transformer winding (85%) stayed almost steady on Wednesday.
However, the most active Copper contract for September delivery on the Comex division of the New York Mercantile settled up by 0.8% to $2.3500 a pound on Wednesday.
Copper futures prices at New York Mercantile Exchange settled up boosted by a drop in the dollar boosted the appeal of industrial metals as alternative investments.
The Bloomberg Dollar Spot Index headed for its biggest loss since June after China devalued its currency and concern mounted that the Federal Reserve will delay raising U.S. interest rates. Higher rates curb the appeal of commodities, which don’t pay interest, and tighter monetary policy usually helps boost the greenback.
Markets were pressured by the dollar hitting a 3-1/2 month peak against a basket of currencies on Wednesday after a voting member of the U.S. Federal Reserve's policy-setting committee expressed support for an interest rate hike in September.
A stronger dollar makes commodities priced in the U.S. currency more expensive to buyers using other currencies.
(This article is researched and compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)
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