Given how short the copper futures market had become across the LME, Comex and SHFE, it was no surprise that we eventually got a sharp rebound in prices as short covering took hold. Intraday prices went from below $6,800/ tonne to above $7,200/tonne over the middle part of last week. Now we wait to see whether the bounce is just part of a continuation pattern ahead of the next leg lower (which has happened four times already during the sell-off since early February), whether the initial wave of short covering triggers a cascade effect that generates a larger rally, or whether this is the start of a choppy base-building period, as we saw last summer.
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