Column – The big copper short is back as macro fears return – by Andy Home (Reuters U.S. – June 11, 2019)

LONDON (Reuters) – The trade war trade has returned with a vengeance as copper and other industrial metals come under sustained fund selling pressure.

On the London Metal Exchange (LME) three-month copper fell 11% from $6,443 a tonne at the start of May to a June 7 low of $5,740, its weakest price since the start of January.

It has clawed its way back to $5,920 but with bearish funds still massing on the short side it remains to be seen whether this is anything other than a pause for collective breath.

Current market dynamics are a rerun of the price weakness in the third quarter of last year, with investors again focused on a deteriorating macroeconomic picture and the knock-on effect on metals demand.

And once again macro clouds are obscuring copper’s own resilient fundamentals in the form of weak mine production growth and supply chain disruption.

For the rest of this article:

Comments are closed.