Production cuts reduce surplus, but not yet exchange stocks

摘要

Was the impact of Glencore’s production cut on the copper price a few weeks ago littlemore than a storm in a teacup? When it occurred we were not too convinced that thebrief push towards the $5,400/tonne mark was sustainable, and this has indeed turnedout to be true. But it would be churlish to think that Glencore’s cuts will not put copperon a stronger footing over the coming months as the closures feed through the supplychain. As far as investors are concerned though, what is yet again of primary importanceis the pervading macroeconomic weakness being experienced around the globe; theso-called slow burn.