Although the price of Copper has fallen back somewhat from its recent record high, it is probably still too early for a significant correction, Commerzbank’s Head of FX and Commodity Research Thu Lan Nguyen and Commerzbank’s FX analyst Volkmar Baur report.
Copper pullback limited despite recent record highs
“The purchasing managers’ indices from China point to continued weakness in both the manufacturing and construction sectors. However, industrial production has been largely unaffected by the PMIs in recent months and has continued to rise. In addition, the 10 percentage point reduction in US tariffs on Chinese imports announced on Thursday has not yet been taken into account in the survey.”
“Furthermore, Chile’s statistics agency reported a continued decline in Copper mine production for September. And last but not least, metal production also disappointed with a weaker-than-expected increase (based on a Reuters survey). Supply concerns are therefore likely to persist and limit the downside potential for Copper in the short term.”
