One of the key risks for copper revolves around how China responds to the Omicron virus threat. If China maintains their COVID free policy then this could result in large cities once again going into strict lockdowns. This in turn will likely cause supply chain bottlenecks and damage demand for key commodities like copper.

If China, on the other hand, decides that Omicron is not such a serious threat as the Delta variant and therefore tolerates community transmission hopes for global growth could once again strongly stimulate copper demand. Copper’s seasonal pattern is worth being aware of.

Over the last 15 years, Copper has risen 12 times. The largest fall was in 2013 with a 6.37% fall. The largest gain has been in 2008 with an 18.31% gain. Will copper rise again in February?

Major Trade Risks: The main risk to this outlook is widespread lockdowns across China due to rising Omicron cases on the mainland.

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