Remember in October, as copper soared incessantly, signaling that the global ‘synchronized’ recovery was well underway and everything was awesome… well it’s not anymore!
Copper is back below $3 as China slowdown concerns start to get priced in…
Additionally, Bloomberg reports that copper inventories held in the London Metal Exchange’s global warehouse network jumped on Tuesday, ending a 14-day streak of drawdowns and suggesting that the seesawing trend in copper stockpiles on the bourse isn’t over yet.
With prices trading at their lowest in 2 months, the spike may dent sentiment further by signaling that there’s still plenty of copper around, despite a recent rebound in demand.
“The metal’s left the exchange, but the spreads haven’t tightened, meaning that it’s very unlikely that it’s due to consumption,” he said. “It’s highly likely to be a stock shift.”
It seems it is time for the speculative fervor in levered futures is about to unwind back to the ‘raw’ commodity reality on the ground…
Funny how the mainstream media is not chatting it up about Dr.Copper anymore?
