Copper

[Dona Ferentes]

Not a bad summary of copper stocks on the ASX to consider.

That talks about Cu hitting $10,000 .. .. and managed to do so already, if only temporarily


Copper futures on the London Metal Exchange rose as much as 1.9 per cent to more than $US10,000 a tonne, while copper contracts on New York’s Comex rose as much as 1.4 per cent to near an all-time high before surrendering gains.

The Comex price started surging above its international benchmarks in January as traders bet on tariffs for US imports of the metal. The price gap hit a fresh all-time high of more than $US1400 a tonne on Monday (Tuesday AEDT), surpassing late February’s record after Trump announced a Commerce Department probe into potential levies.

The large price differential between London and New York has created a worldwide dash among traders and dealers to ship the red metal into America to capture the lucrative premium. Such a move has left the rest of the world, especially top consumer China, short of the crucial industrial metal.

At day end, Copper on the LME was 1 per cent higher to settle at $US9956 a tonne near 6pm in London. Comex copper was 0.4 per cent lower to settle at $US5.0925 a pound in New York.

 

[rederob]

A year ago copper prices threatened to go ballistic and stay higher in anticipation of longer term supply shortages.
That never happened and its price returned to the lower $4/lb range.
Step in Trump.
Step in a tariff war that is expected to require American importers to pay an extra 25% for the metal, and voila.
Yesterday's copper price was the highest closing price ever, and today we hit an intra-day high 20cents/lb higher than the previous record before falling back to the mid$5.20s.
While there's price action on screens, the real action in the past month has been on the oceans, where ships traditionally carrying more copper to China have been redirecting some of those cargoes to America.
Trump has yet to announce a date for copper's tariffs, but there is widespread expectation that it will be sooner rather than later.



US stockpiling is expected to continue, maintaining the present high prices for a good while longer.
Which then begs the question of how non-US markets will react.
LME's stockpiles are ok for now, but its copper price has not been immune from what's going on elsewhere.
That leaves the ultimate question of whether or not the diversion of physical metal to US stockpiles will squeeze the global market such that there will be a massive short term spike before a rebalance.
Watch that space.

 

[qldfrog]

Down today when i look at my copper etf in the US..

 

[EquityEspresso]

Glencore stopping shipments has helped the price too

 

[Sean K]

Another copper article, this one comparing ASX copper plays focussed on the charts.

OK for some ideas.

Watch these ASX copper stock charts carefully as the copper price soars!

The copper price is rising again, and the ASX hosts several world-class copper stocks. We investigate which of their charts looks the best.

www.livewiremarkets.com