Copper steams ahead

Copper continues to creep higher, and is now setting six-week highs.

Copper is healthily above the 20-, 50- and 100-day moving averages, and has shown no sign of losing its momentum. The demand that was driven by Chinese consumption, however, would appear to be a little on the thin side. China is the largest producer as well as the largest consumer of copper, and has seen a relaxation of government regulation as well as a potential oversupply to the market.

As in so many sectors, commodities – copper especially – has felt the expectations of next week’s Federal Reserve Open Market Committee statements hanging over its prices. Plenty of economic data is also being released on Monday, including manufacturing figures for all the major producers in Europe.

The picture for supply still looks very full for next year, as a number of mining companies have stated they are likely to increase production for the year ahead; but with so many important catalysts likely to appear, a cautious stance on the metal would be advisable. 

High grade copper chart

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.