Copper Rout Outpaces Analysts Focused on Production Shortages

Bloomberg reported that the biggest rout in copper since the recession drove speculators to cut their price forecasts by 16 percent as mounting concern about growth cut expectations for supply shortages.

The market news is quoted as saying:

Speculators in U.S. futures are making the biggest wager on declining prices in more than two years, U.S. government data show. Barclays Capital cut its forecast for the shortfall in global supplies five times since April and Deutsche Bank AG is anticipating a surplus as early as next year.

“If you don’t have demand then you don’t need to talk about shortages,” said Robin Bhar, an analyst at Credit Agricole SA in London who has followed the metals market for about 25 years. “This is not a normal market. There is a lot of fear out there. At the moment people are panicking. When you panic, you don’t think rationally.”

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