Listen to the latest market mood for the HG1!
Copper’s prices have been underpinned by a number of factors even as equity markets tumble. China has been boosting infrastructure spending after the fall out from COVID-19 which has been helping copper demand. There has been a sharp drawdown in stockpiles in LME tracked sheds and copper holdings have collapsed to lowest since 2005. Looking at outstanding orders to remove metal they haven’t bottomed yet. The USD has been weak and that helps boost commodity prices including copper. Supply concerns are lingering especially in top producer Chile.
If this environment remains then expect copper buyers on pullback and breakout.
- A fast return to supply from Chile.
- A rapid fall in copper demand across the world.