Copper has dropped in price on the London Metal Exchange (LME), pushing down the scrap price with it as investors look for something more secure, following the European Central Bank’s indications that it might raise Euro interest rates next month.
Unrest in oil-producing Libya and the Middle-East keeps pushing up oil prices as supplies are squeezed. This has meant that copper dipped on the LME from $9,918 last week to $9,540 this week. MRW copper scrap prices have fallen by £50 a tonne, trading at £5,250-£5,450 a tonne.
However, industry experts believe the move away from investment in copper has led to a rise in gold prices as investors push prices to record highs. MRW has seen gold rise from £26.21 last week for fine gold to £26.80 this week.
It is felt that this volatility in the markets will continue until industry understands what impact the high and sustained oil price will have on markets.