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Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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September 2019 | Base Metals


Copper: Short-covering kicks in


Copper prices have enjoyed a short-covering rebound since the start of September, driven by positive macro and fundamental factors at play. Given the excessively negative copper positioning among the speculative community, we see plenty of room for further short-covering in the months ahead, especially if fundamental indicators continue to move in the right direction.

Short-covering rebound responding to macro factors...
The LME copper price has experienced a decent short-covering rally (+3%) since the start of September, driven by positive macro and fundamental factors at play.

On the macro front, global risk-taking appetite resumed (world equities are up 2% in the month-to-date), especially in China where the Shanghai composite index is up 5%. This has been triggered by (1) a de-escalation of the US-China trade dispute after both countries agreed to resume talks and (2) additional China’s policy easing after the PBoC cut its reserve ratio to its lowest since 2007.

As we cautioned in our previous report, copper...

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