June 2012 | Base Metals
Slower economic growth threatens a lower trading range: Copper - Market Analysis
Prices are attempting to rebound, but it has not been a convincing effort so far. US data last week did not help, and in fact raised the chance of a more pronounced global economic slowdown. In the absence of fresh stimulus spending or monetary easing, this would push copper prices down to a lower trading band, especially as they are nowhere near marginal costs of production.
China’s exports of copper weaken the LME copper price structure
Until mid-May it seemed as though copper prices might avoid seeing fresh weakness, as falling LME stocks suggested that availability in the West was tight, as most of the surplus metal was being shipped to China as collateral against bank loans. However, with some of the large Chinese traders...
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