Copper price may reverse, says ETFS research
Despite global copper inventories reaching a nine year high in April, a number of factors could be combining to reduce the surplus and lead to a turnaround in the price that stands at an 18 month low, according to analysis from ETF Securities.
ETFS said that there is evidence of potential supply issues in both the US and Chile, the world’s biggest copper miner.
Warrant cancellations on the London Metals Exchange suggest that the demand-supply balances is starting to tighten, and net short positions have reached multi-year highs, it added.
To read the full research note click here: [asset_library_tag 6655,Copper Turning Point]