Got it. That's on the consumption side. However, lower LME stocks should correlate with higher CU prices. Reasoning: LME is on the supply side. Copper certainly has been tricky to trade recently....the big move down has been followed by choppy sideways action. However, I think we need to break $3.00 here before there is an impact on the copper mines....i.e. they stop production.
Rio Tinto to sell 80% stake in copper mine http://www.marketwatch.com/story/ri...ake-in-copper-mine-2013-07-28?dist=beforebell Rio Tinto selling two copper mining interests. No need to ask why.
The performance of this morning of the Aussie (and its bad data on the housing market) make the break of the long-term support of the copper very likely.
Nothing has changed except Nat Gas is lower and I am long, I am still short Copper., eventually it will go down.
Dunno...I am worried it's taken so long to break the $3 mark. Word has it that China will eventually get back to high growth once the lending standards are relaxed. Question is WHEN ?
Copper Boosted to Week Highs on Steady Stimulus, China Data By Thomson Reuters - Thu 01 Aug 2013 07:33:38 CT London copper reached its highest level in almost a week after the Federal Reserve gave no indication of an imminent reduction in monetary stimulus and as Chinese manufacturing data beat expectations. ---------------------------------------------------------------------------------------------------------------------------------------------------- Commentary:I can assure you that a lot of this mini-rally is short covering and technical in nature. Copper's hold of the $3 level was quite a positive outcome for the bulls. Copper won't rebound much above $3.25-$3.40....I think that's a guarantee. At the same time, there's not much downside either unless we have a huge hit in the US and Chinese economies.
that is why support. maybe bears too ambitious http://usa.chinadaily.com.cn/2013-08/02/content_16863960.htm china satates openly that property will be one of key industries to get growth. Only way to do that is to build and therefore uses copper, etc
Yes I agree. This trade is like the Euro trade everyone was talking about last year....where the Euro currency was supposed to crash. Well, one year later and it NEVER HAPPENED. Why ? Everyone was expecting it to go down. This is looking very much the same. It's going to take quite an economic downturn to pull this guy under $3 IMHO.