The sell-off that was getting underway as our last report went to press continued through the first half of June as investors exited commodity markets en-masse amid fears that rising global interest rates would slow growth and curb metals demand. However, as we stressed last month, there were ample bullish factors still in the market to protect the downside and, as expected, these came to the fore as fund and consumer bargain-hunting emerged in the dip. Based on official three-month prices, copper successfully established a floor in mid to late June, forming a double-bottom at 6,600 dollars/tonne. This provided a solid foundation from which prices rallied in the final days of the month and early July. Having regained territory above the important 7,000 dollars/tonne, 7,100 dollars/tonne and 7,420 dollars/tonne levels, the market is unmistakably back in bullish mode.
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