| According to a Reuters piece released earlier today, commodity traders Trafigura and IXM are looking to buy physical copper to deliver against large short positions with designs to close them out, five sources with direct knowledge of the matter said - Trafigura, IXM caught in COMEX copper short squeeze as prices hit record.
"Trafigura is one of the largest physical suppliers of copper to North America and given the premium in this market we are shipping larger quantities of the metal to COMEX," a Swiss-based trader said.
Analysts Revising Cu Price Forecasts
Revising price targets is par for the course as the global megatrends of decarbonization and electrification gain momentum. Example: Chile's state-run copper commission—Cochilco—is due to revise its outlook for the commodity, which will land considerably higher than previous prophecies (in January, Cochilco had projected a price of $3.85 per pound for 2024). Cochilco sees a considerable increase in Chile's copper price forecast.
Going forward, Cochilco is “moderately optimistic” on how copper prices will evolve, vice president Joaquin Morales told journalists.
A Cu Primer
For a primer on some of the compelling fundamentals underpinning this market, the following WSJ piece is worth the 5-minute read - Why the World Has Gone Cuckoo for Copper.
BHP Group’s record nearly $43 billion takeover bid for Anglo American, which was rejected Monday, puts a fresh spotlight on the intense demand for copper. While London-listed Anglo produces a range of commodities, from diamonds to nickel, Australia’s BHP has made clear that it most prizes the company’s copper assets. Anglo rebuffed BHP’s first offer last month, and other companies are believed to be weighing rival bids |