The discount in some base metals is encouraging strategists at TD Securities to recommend buying copper, among other metals, at these prices.
Key quotes
“Fading the fear factor in copper may pay off, and we reiterate that current prices in the industrial metals complex may allow for participation in the reflation trade at a sizable discount.”
“The bar is now razor-thin for CTAs to reverse their massive selling program in the red metal, with a close above $5,745/t on the day implying systematics will look to cover almost the entirety of their short position.”
“CTAs have also initiated a noteworthy buying program in nickel, while CTA selling in aluminium has come to a finish, although momentum signals remain fairly far from flipping into positive territory.”
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