According to analysts at ANZ, copper market has been a lightning rod for investors’ concerns over the impact of the US-China trade conflict on global economic growth.
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“These concerns have been backed up by data showing weak demand for copper. However, winds of change appear to be blowing.”
“Our copper downstream indicator is showing signs of improving. We talked recently about the positive impact renewable energy is having on demand. Now traditional sectors, such as autos and property, are playing their part. This comes amid an escalation in supply-side issues, with unrest in Chile.”
“Under these conditions, a US-China deal could have great significance. Investors are already reducing their short positions. A deal could spark a rebound in prices to above USD6,000/t.”
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