Copper Turning Higher Again
Copper prices are turning higher again today following a week of heavy congestion. The futures market has been trapped in a narrow band of trading following the reversal lower on Friday Oct 10th as Trump threatened to hit China with fresh 100% tariffs. The move higher has been partly linked to an easing of US/China trade tensions since that date. A softer tone from Trump, as well as the scheduling of US/China negotiations this week has fuelled optimism that a deal can be agreed ahead of the upcoming Nov 10th deadline.
US/China Trade Talks
Delegates from the two countries are due to meet in Malaysia tomorrow to resume trade talks ahead of a potential meeting between Trump and Xi at the APEC summit next week in Korea. If talks this week go well and we see positive headlines emerging, this should push copper prices furtehr higher near-term, bolstering risk appetite generally.
Supply Disruptions
Prices are also rising on the back of news of yet further supply disruption in the copper industry. The partial collapse of a mine in the Dominican Republic has seen reduced supply coming from there, adding to supply disruptions amidst the ongoing suspension of production at the Grasberg mine in Indonesia and the El Teniente mine in Chile. While supply from these mines remain down, upside pressure on price should remain.
Technical Views
Copper
The correction lower in copper found support into the 4.8010 level. While that level holds, focus is on a fresh test of the 5.1985 and a breakout towards the 5.4415 level next with the YTD highs sitting above as the main objective for bulls.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.