Copper’s Stunning Rally Stumbles as Doubts Creep In on Demand
- Metal’s climb has stalled after approaching record in February
- Some physical and financial signals point to dimmer price view
Copper surged into the first two months of 2021 on expectations that it would smash through record highs, and almost did so in late February. So why has it been treading water since?
The following four charts show how both physical and financial indicators could be turning against the metal and threatening to push prices lower, even while analysts say the longer-term picture is still strong. The headwinds for the industrial bellwether metal underscore the tenuousness of the global recovery from the coronavirus pandemic.
Stockpiles in warehouses tracked by exchanges in London and Shanghai have surged in recent weeks, helping ease concerns over tight supplies. Inventories monitored by the London Metal Exchange have more than doubled since late February. Stocks on the Shanghai Futures Exchange rose for nine straight weeks through early April in the longest run since 2014.