Vi använder en mängd olika cookies för att du ska få den bästa användarupplevelsen. Genom kontinuerlig användning av denna webbplats godkänner du vår användning av cookies. Du kan läsa mer om vår policy för cookies och redigera dina inställningar här eller genom att följa länken längst ner på alla sidor på vår webbplats.
After the metal charged into oversold territory, it is perhaps no real surprise that this was followed by a couple of days of short covering. Although there is a scarcity of good news available for copper, the predominantly one-directional trajectory was bound to ease at some point.
Today we have again seen some mild buying support helping to edge the spot price of high-grade copper higher. And, when you consider it has just come off the longest losing streak in almost four decades, we should not be surprised if we see a couple of days of bounce.
It has been widely anticipated that an increase in mining capacity would see the market flooded with copper. However, a number of the larger smelting plants around the globe have, for one reason or another, been unable to run at full capacity. This has created something of a bottleneck: miners are able to extract the commodity from the ground, but smelters are unable to convert it into saleable high-grade copper at the usual rate. This could take a little time to unwind, but ultimately will create a ready supply to the market.
Copper’s bounce could last a little longer, but ultimately the spot price looks destined to head lower.