Earlier in July, Deutsche Bank also cut its copper projections due to weak Chinese demand. DB also expects rising supply in 2016 on new mine commissions, which could cause copper to “remain vulnerable to periodic bouts of ‘shorting.’”
“Codelco, the largest producer, has cut the premium it will charge buyers in China next year by the most since the global financial crisis, while Arc Resources Co. predicts a 10 percent drop in refined imports by the biggest consumer in 2016,” reports Martin Ritchie for Bloomberg.
Lastly, wetter conditions in Chile, the world’s largest copper producer, could lead to flooding in copper mines, which would impede supply. That could provide some relief, albeit temporarily, to copper prices.
iPath Dow Jones-UBS Copper Subindex Total Return ETN
