Copper “May Not be in a Bear Market After All”

In an article for Metal Miner, Stuart Burns takes a look at copper prices, noting that earlier calls for a bear market for copper this year may have been slightly muted. Specifically, he took a look at LME stockpiles and demand from China as indicators of possible oversupply.

As quoted in the publication:

The gain in the flash PMI was at odds with data such as credit growth and industrial output according to Reuters, which has pointed to a loss of momentum and the possibility that the official 7.5% economic growth target wouldn’t be met in 2014. Encouragingly for metals producers looking for price support, total new orders gained and new export orders rose to the highest since March 2010, indicating that the rebound in the PMI may be maintained for the next few months. In addition, a fall in employment may, more than any other measure, prompt Beijing to introduce further mild stimulus to the economy, which it is hoped by producers would support prices.

Click here to read the full article.