Whats going on with copper? Inventories are at a 15 year low and the price hasn’t moved one bit.
This is a tug of war between the bulls who are shouting low inventory, and the beares that are shouting strong dollar.
Two weeks ago copper touched 3.90, but look at this chart, the dollar since then has got a tenth of a point stronger against the yuan.
This correlates exactly to coppers decline in the same time period.
But todays news of it actually hitting a 15 year low really points to a supply issue, unless investors are betting that there is a lot of inventory held outside of the LME warehouse system .
the bulls’ bet is that the dollar cant strengthen forever and at some point the low inventory is going to lead to higher prices.