The red metal is under selling pressure influenced by price action in the base metals complex, notes Ryan McKay, Senior Commodity Strategist at TDS.
China builds up copper inventories
“Price action in the base metals complex continues to ward off selling pressure from Commodity Trading Advisors (CTAs) in Copper, however, the higher selling trigger, now at $9,422/t, is becoming a more entrenched risk for the red metal.”
“With our global commodity demand gauge continuing to weaken, while depressed premiums and rising inventories in the Middle Kingdom argue against fundamental shortages, major traders on the Shanghai Futures Exchange (SHFE) have taken a net short position.”
“While the fundamental situation certainly looks promising for years to come, the lack of evidence supporting current physical scarcity may continue to see these money managers’ positions unravel.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
