Copper Flashes Red as Stockpiles and Spreads Point Bearish
- Spreads and inventories signal the market isn’t short of metal
- Concerns are creeping in about the strength of Chinese demand
Copper Sees Worst Day in More Than Two Years
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Copper is coming off the biggest one-day slump in two years and the mood in the market is souring. Even though prices are still up dramatically this year, here are four reasons traders are cautious for the future.
Copper inventories held in global exchanges remain stubbornly high, even after heavy disruptions to supply from mines in Chile and Indonesia at the start of the year. A large inflow on to the London Metal Exchange was a catalyst in Tuesday’s rout, as it sent a reminder that the market isn’t short of metal.