Demand Concerns May Affect Copper’s Rally
The price of copper fell below its $10,000 per ton level at the start of last week on the London Metal Exchange for the first time in weeks. The metal’s risk equilibrium seems to be shifting as funds begin raising bear bets on the CME copper contract. However, supply concerns are still increasing following protests at a pair of big copper mines in Peru. These protests knocked out one-fifth of Peru’s production capacity before the country’s government declared a state of emergency to reclaim control of the Cuajone mine. Over the last few weeks, managers of funds have increased bearish…
