Copper Soars To 1 Year Highs – Up For A Record 12 Days In A Row
Despite lower Chinese imports (for the 7th month in a row) and surging supply, copper prices have just surged to 12-month highs, breaking through March stops in a technical move that has seen an unprecedented 12 days up in a row.
Following 9 straight down days, copper futures have now surged for 12 straight days to one year highs… The previous record streak of gains was 9 days (Dec 2004 and Sept 1991)
But as Bloomberg details, China, the world’s biggest producer and user of refined copper, reduced imports for a seventh month to the lowest level since February 2015, as domestic output climbed.
Purchases of unwrought copper and products fell 15 percent to 290,000 metric tons in October from 340,000 tons a month earlier, and compared with 423,380 tons a year ago, according to Chinese customs data on Tuesday.
China’s productionexpanded 7.2 percent to 725,000 tons in September from a year earlier, taking output to 6.2 million tons in the first nine months, up 8.4 percent from the same period last year, as capacity expanded and ore imports increased.
Still wondering who or what is driving this? Simple – speculative bets on China…
Hedge funds and other large speculators boosted their long positions by 20 percent to a record 67,806 U.S. copper futures and options contracts in the week ended Nov. 1, according to Commodity Futures Trading Commission data released Friday. As Bloomberg adds, even as copper is in an oversupply in the short term, there is a consensus that over the medium term it is one of the most scarce commodities, Vale SA Chief Financial Officer Luciano Siani said in an interview Thursday.