GREY:NEVDQ - Post by User
Post by
bogfiton Oct 24, 2022 9:58am
138 Views
Post# 35043360
China Is Scrambling For Copper Again
China Is Scrambling For Copper Again"There is increasing evidence of a copper supply squeeze in the works and we believe that copper prices could be on the verge of a forceful rebound. Copper miners are well-positioned to benefit from higher prices in the immediate term, while underinvestment in new mines and deteriorating mine yields mean that the supply shortfall could persist for an extended period of time. Investors may consider building a diversified exposure to copper miners ... Overwhelming pessimism on the outlook for global economic growth and stalled real estate construction in China, have led to a -20% decline in copper prices year-to-date. When measured against its March 2022 peak, copper prices are down by around 30% at the time of writing.Copper inventories at warehouses tracked by the London Metals Exchange have plummeted over the past week as the copper market in Shanghai appears to have reached a breaking point. Bonded warehouse copper inventories tracked by local data provider Shanghai Metal Market have plunged to a new low as real estate construction in China was halted by Covid lockdowns while many real estate developers also had to delay projects due to a cash flow crisis. Meanwhile, a proxy for China's demand for copper imports commonly referred to as the Yangshan copper premium has surged to around $147 per tonne above LME spot, a level not seen since 2013." Global X Copper Miners (COPX) ETF: Copper Squeeze Incoming | Seeking Alpha