Copper is Overpriced and Oversupplied, Macquarie Analysts Say
Towards the end of last week, the price of copper dropped by over 1% to reach $5.43 per pound. Thus far, the red metal’s price has reduced by more than 16% from its January high. A recently conducted analysis shows that copper’s sharp price increase from last year was primarily driven more by investor activity than by underlying market fundamentals. The analysis, conducted by Macquarie Strategy’s analysts, was based in cities like Singapore, Geneva, Houston, Shanghai, and London. In their report, the analysts note that trading volumes for base metals on the Shanghai Futures Exchange rose by 80% in January compared to December, indicating a surge in speculative interest. They also highlighted that total interest in copper contracts across Shanghai, London, and New York rose by more than $9…
