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Sogosohubidu201on Aug 16, 2019 5:11pm
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Copper Prices May Take Off as Supply Tightens
Copper Prices May Take Off as Supply Tightenshttps://www.barrons.com/articles/kraft-heinz-stock-falls-after-finally-filing-quarterly-reports-51565709856
World refined copper is expected to see a deficit of about 190,000 metric tons in 2019, with that deficit widening to 250,000 metric tons in 2020 as refined production lags behind usage, according to an International Copper Study Group report released in May. “Delays in production from the large Oyu Tolgoi underground copper/gold mine in Mongolia” suggest a potential supply risk for copper concentrates, says Joe Mazumdar, an economic geologist and co-editor of Exploration Insights. An Aug. 9 U.S. Commodity Futures Trading Commission report showed net positions for large speculators in U.S. futures markets at minus-58,400 contracts as of Aug. 6, according to Investing.com.
“They are overwhelming[ly] short copper,” Badiali says. “Everyone is on one side of the boat....When they have to cover, there will be a ridiculous rally in copper prices.”
Copper’s real driver will be “the adoption rate of alternative energy and electric vehicles,’’ he says. “If the trend is real, then we are watching the birth of an epic bull market in copper.”