Global copper inventories are on the rise, with stockpiles in China, the world’s largest copper consumer, continuing to increase. The accumulated stockpiles could be consumed domestically, which would reduce imports, after Chinese regulators tightened rules on repatriating foreign currency from re-exporting copper.
MF Global analyst Ed Meir ponders whether the weaker dollar will provide the next boost for the group or will investors sell on the moderate growth outlook. Meir believes the latter will occur as higher energy prices contribute to more inflation.
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Exchange-traded note (ETN) options include:
- iPath DJ-UBS AIG Copper ETN (NYSEArca: JJC)
- iPath DJ-UBS Nickel TR Sub-Idx ETN (JJN)
- iPath Pure Beta Copper ETN (CUPM)
- iPath Pure Beta Nickel ETN (NINI)
ETF options include:
Max Chen contributed to this article.