Prices of most nonferrous metals
declined on Tuesday, weighed down by a sombre economic growth
outlook in the upcoming quarters, rising inventories and a
generally firmer dollar. .
Copper prices rose on Friday but
were set for a flat quarter on the back of two straight months
of decline, as rising inventories and a dollar rally cancelled
out gains in July. .
Prices of copper moved in small
ranges on Wednesday amid caution ahead of the U.S. Federal
Reserve s rate decision expected later in the day, while rising
inventories capped any strong gains. . -September 20, 2023 at 02:58 am EDT
- MarketScreener
Copper breaks links with Chinese bond yields
January 28, 2021
Very high levels of speculation in the red metal
Looking back at 2020, it appears that copper was a perfect story for the bulls to ride on. Stockpiling in China, strong industrial recovery, disrupted mines and flip-flop on Chinese scrap import policy created a deficit of metal.
The metal’s exchange inventories fell by 67 per cent in a year. The International Copper Study Group (ICSG) assessed nearly 500 kt of seasonally-adjusted deficit in last 12 months.
While fundamentals had supported higher prices from March lows, the key question is whether prices have gone too far. If Chinese bond yields are any guide, it looks like speculators have built-in premium beyond Chinese growth potential. Any country’s 10-year bond yield is a typical indicator of its growth trend. Generally, bond yields rise ahead of economic recovery. Inversely, yields fall once market anticipate peaking of growth cycle.