Copper digs in at $4,500-4,600/tonne

摘要

The excitement surrounding the potential benefit to the market balance of Chineseproduction cuts and even possibly SRB purchases, has already blown over leaving littletrace. If news of a planned cut of 200,000-350,000 tonnes in China had not seepedout in early December, would prices be even lower? Probably not, in our opinion. Thereality is that Chinese production can fluctuate on this scale from month-to-month(when looked at on an annualised basis). A much grander gesture would have beenrequired to stop the current price rot, and producers would have only needed to lookback a couple of months to Glencore’s announcement to see this.