Copper 02 (Nov 12 - Dec 25)

[winston]

Copper sinks to 17-month low as slowdown fears mount

BENGALURU: Copper prices dropped to a fresh 17-month low on Monday as renewed lockdowns in top consumer China and the prospects of aggressive rate hikes stoked fears of global economic slowdown, denting demand for metals.

Three-month copper on the London Metal Exchange was down 1.4% at $7,938 a tonne, as of 0717 GMT, after hitting its lowest since early-February 2021 at $7,918 earlier in the session.

"Softening demand and concerns over a growth slowdown are dragging on the sector. We think improving Chinese economic activity will stabilise prices," ANZ analysts said in a note.

"Inventories for metals are shrinking to multi-year lows. Supply challenges due to higher energy prices and other operational issues will allow little room for inventories build."

From the United States to the euro zone, activity at factories slowed to levels last seen during the initial wave of the pandemic.

Adding to demand worries, cities in eastern China tightened COVID-19 curbs on Sunday as coronavirus clusters emerge, posing a new threat to the country's economic recovery under the government's strict zero-COVID policy.

Source: Reuters

https://www.thestar.com.my/business/bus ... ears-mount

[winston]

Copper price plunges to a 20-month low and historic recession alarm bells are ringing

BY CHRISTIAAN HETZNER

“Europe, US are facing risks of recessions and can hardly contain inflation, which will lead to monetary tightening that is bearish for copper, while in China, the economy is facing a double blow from the flare-up of new cases and a weaker-than-expected demand recovery.”

About 20.7 million tonnes (22.8 imperial tons) of virgin copper were hauled up out of the earth.

Another 8.7 million tonnes annually.

Source: Fortune

https://fortune.com/2022/07/06/copper-p ... rtunedaily

[winston]

Goldman Goes Cold on Copper as Power Crisis Sparks Bearish Pivot

Chopped its near-term price forecasts in anticipation of a sharp slump in consumer spending and industrial activity as Europe’s energy crisis deepens.

The dollar’s surge has weighed significantly on copper and the global energy squeeze that’s threatening growth is “heavily skewed toward escalation into winter”.

Slumped almost 30% from a record in March.

The copper market is facing a surplus for the coming two years as demand wanes and mines keep expanding.

Source: Bloomberg

https://finance.yahoo.com/news/goldman- ... 39294.html

[behappyalways]

Copper falls below $7,000 a ton for the first time in 2 years, flashing a potential recession signal
https://markets.businessinsider.com/new ... nal-2022-7

[winston]

A Huge Rally Is Near Certain with This Metal

by Brett Eversole

Copper dropped 24% in just one month recently. We can expect more losses at first. But copper prices will likely be dramatically higher a year from now… And a 50% move higher is possible.

Copper prices don’t move much over the long term. They increased by 2.6% a year since 1988, roughly keeping up with inflation.

Copper prices don’t move much over the long term. They increased by 2.6% a year since 1988, roughly keeping up with inflation.

Source: DailyWealth.com

https://dailytradealert.com/2022/07/24/ ... his-metal/

[winston]

Copper Worth Nearly Half a Billion Dollars Goes Missing in China

The group has a total claim on 300,000 tons of concentrate worth about 5 billion yuan ($740 million), but there’s only 100,000 tons at the depot, the people said.

That puts the dollar value of the missing material at about $490 million.

Source: Bloomberg

https://finance.yahoo.com/news/copper-w ... 39031.html

[winston]

Copper supported by hopes interest rates may soon peak

Prices of the metal used as a gauge of economic health are up 14% since July 15.

Part of the reason for base metal price rises in recent weeks is funds and traders buying back short positions as the dollar retreated.

China's copper imports rose 9.3% from a year earlier as the sharp drop in prices triggered buying against a backdrop of falling domestic inventories.

Copper stocks in warehouses monitored by the Shanghai Futures Exchange are down 79% since March, the lowest level since Jan. 28.

Source: Reuters

https://www.thestar.com.my/business/bus ... -soon-peak

[winston]

Glencore Involved in CN Traders' RMB3.3B Missing Copper Concentrate Scandal: Report

Glencore Plc and other key traders have halted supplies to Chinese metals merchant Huludao Ruisheng, as the latter is involved in the RMB3.3-billion Qinhuangdao copper scandal, reported Financial Times.

Glencore has already transferred some existing metal inventories from Qinhuangdao to Qingdao in attempt to avoid similar problems.

Huludao Ruisheng claimed to be holding merely a third of the 300,000-ton copper concentrate inventories in Qinhuangdao that are owned by 13 Chinese trading companies, implying potential losses of RMB3.3 billion for these traders.

Last week, the firms sent a team to Qinhuangdao to probe into the case and determine further legal action.

Source: AAStocks Financial News

[behappyalways]

One Of China's Biggest Commodity Traders Faces Liquidity Crisis
https://www.zerohedge.com/commodities/c ... ity-crisis

[winston]

The copper market is flashing signs of tight supply

by Archie Hunter

Biggest backwardation since November last year.

Chinese copper imports ticked higher, while top producer Chile said exports were at a 19-month low.

"Europe is spending as much as possible on grids and renewables to become energy independent from Russia and China's doing the same for decarbonisation reasons."

Chinese imports of copper are up 8.1% in the year to August.

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... ght-supply