- Funds have stopped betting on higher copper prices due to the turbulence caused by the collapse of Silicon Valley Bank, which is spreading fear to other risk asset classes as well.
- Investors have turned net short of CME copper for the first time in five months, and funds have reduced their long exposure on the London Metal Exchange.
- Goldman Sachs still reported though that they expect higher copper prices, but fund managers are not buying in and are overwhelmed by macro fear.
- We have seen China’s net imports of refined copper down by 13% year-on-year over the first two months of 2023.
- according to Kostas Bintas, co-head of metals at commodity trader Trafigura.
Copper prices could surpass $12,000 per tonne this ear which is well over $5 a pound.
- This sentiment is driven by an expanding electric vehicle sector and investment in solar energy but funds still are not investing in the longer-term bull narrative right now.
- Copper’s next major price move could still be generated by China, which is coming out of lockdown after the lifting of zero-COVID restrictions.
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