Copper 03 (Oct 22 - Dec 27)

[winston]

Are We Heading To Recession? This Key Indicator Says No

by SCOTT LEHTONEN

Rising copper prices over the last several months suggest the economy may be doing better than headlines suggest right now.

Source: IBD

https://www.investors.com/research/rece ... src=A00220

[behappyalways]

Copper demand is set to surge over the next several decades
https://mobile.twitter.com/Mayhem4Marke ... 1150000131

Global copper stockpiles may deplete by August of this year
https://mobile.twitter.com/Mayhem4Marke ... 1849730048

[behappyalways]

https://twitter.com/Mayhem4Markets/stat ... 7153612801

https://twitter.com/Mayhem4Markets/stat ... 2852598786

[winston]

not vested

"Dr. Copper's" Prescription Proves Effective

BY Aibek Burabayev

The recent release of US GDP data, which was well below expectations, and the contracting Chinese manufacturing statistics are supporting a bearish outlook for the copper price.

While the trend is currently bullish for the gold/copper ratio, it suggests a potentially gloomy outlook for the global economy, as investors seek the safety of gold.

Source: ino.com

https://www.ino.com/blog/2023/05/dr-cop ... FMVk3ZByM8

[winston]

China’s Copper Woes Damp Spirits of Traders in Asia

by Alfred Cang

The reality on the ground is much gloomier as traders seek evidence of a kick-start to consumption that has so far proved elusive in the months since Beijing lifted its Covid Zero curbs.

A slew of data indicating that China’s recovery is losing momentum.

Chinese imports of the metal in the first four months are lagging 13% behind the pace set in 2022.

China’s need for metals like copper is being capped by softer demand for exports as other nations flirt with recession.

Source: Bloomberg

https://finance.yahoo.com/news/china-co ... 00101.html

[winston]

Copper’s 'China Problem': Where Could Price Go From Here?

by Barani Krishnan

Chinese inflation remains weak, raising concerns about the economic rebound

Price stagnation and falling prices in China indicate deflation

Copper could continue to head lower as demand in China hits a low point

Source: investing.com

https://www.investing.com/analysis/copp ... s_headline

[winston]

Three Reasons Copper Prices Have Slid to a Four-Month Low

by Bob Henderson

Copper prices have slumped to a four-month low reflecting:-
1. Softening demand from China
2. Resolution of supply disruptions and
3. Traders betting against the red metal.

Lowest settlement since Jan. 4 and down more than 12% from the highs they reached later that month.

Source: WSJ

https://finance.yahoo.com/m/eded0721-cf ... rices.html

[winston]

Copper-Gold Ratio Signals Economic Slowdown, Falling Rates and Inflation

By Chris Kimble

Typically, when this ratio rises, the economy is strong, and interest rates are firm to rise. But when it's falling, there is great economic uncertainty, and rates tend to follow lower.

Recently, the Copper to Gold ratio closed below last year's lows.

If history is a guide, a break of support here would suggest a lower inflation risk and higher odds of interest rates falling. And perhaps an uncertain economy as well.

Source: investing.com

https://www.investing.com/analysis/copp ... s_headline

[winston]

Hedge Funds Turn Against Copper

Investment fund positioning in copper on the London Metal Exchange turned into a net short for the first time since June 2020 last week, with short interest being the highest on record at almost 40,000 lots, driven by weak Chinese demand and high inventories.

Source: Oilprice.com

[winston]

As the renewable energy boom gains momentum, it will produce an echo-boom in demand for key battery metals.

The average EV uses almost half as much copper as the average American house, and EVs aren’t the only “green” products that are “metal hogs.”

- Wind energy uses five to 10 times more copper per unit of electrical energy than does the conventional burning of coal.

- Photovoltaic solar power uses six times more copper per unit of electrical energy.

- A Tesla Model 3 requires 240 pounds of copper, which is nearly four times what a midsized internal combustion vehicle requires.

Copper demand for EV battery production will jump 750% this decade – from 210,000 tons in 2020 to 1.8 million tons.

Alongside that surge, copper demand for EV charging stations will soar more than 1,000% by 2030.

The copper supply is under extreme geological pressure; ore grades at the world’s major copper mines are declining.

As this decline intensifies, copper supplies do not merely become less plentiful, they also become more expensive to extract.

Source: Investor Place