Physical Copper Could See “Short, Sharp Squeeze”

Reuters reported that analysts believe a “short, sharp squeeze” could be in store for the physical copper market. That’s because demand for the metal is currently higher than what smelters are able to provide.

That said, they see the red metal being hit by a surplus later in the year.

As quoted in the market news:

‘There is clearly a substantial risk that the copper market could invert more aggressively during the early part of the year before higher refined output finally pushes the market into surplus,’ said Nic Brown, head of commodities research at Natixis.

‘If anything were to occur which might impact supply unexpectedly … then the market might find itself staring at the prospect of a brief but very painful shortage of metal.’

Click here to read the full Reuters report.