In opinion of Researchers at UOB Group in the Quarterly Global Outlook, Copper could be posed for further weakness in the near term.
Key Quotes
“Copper is a key lit mus commodity for the health of the global economy and is of course not spared by the growth slowdown. As Chi na’s manufacturing PMI drifted back be low the expansionary 50 level, the 3M LME Copper also fell as scripted below the USD 6,000 / MT level. Thereafter, despite our cautious expectations of fur ther weakness towards the USD 5,500 / MT level, 3M LME Copper appeared to be consolidating around the USD 5,800 / MT level instead”.
“Overall, while there is widespread diver gence in the industrial metals complex, we continue to see on-going weakness in 3M LME Copper, mainly due to global growth risks. As such, we see 3M LME Copper pulling back to USD 5,600 / MT in 4Q19, USD 5,400 / MT in 1Q20 and USD 5,200 / MT across 2Q and 3Q20″.
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