Short squeeze on the horizon

摘要

The next leg down in the copper price occurred sooner than we had expected and the copperprice fell alongside the broader commodity complex in July, hitting a 6-year low of $5,164/t on27th July. At the time of writing, a round of short covering has kicked in and we expect this tobe sustained through the month, driven by positive supply-side announcements and someshort-term tightness in the Chinese copper market.