The iPath Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJC) has been a laggard this year compared other industrial metals exchange traded products, but some recent data could be a sign the red metal could be poised for some near-term upside.
As global economies gain momentum, industrial metals and commodity-related exchange traded funds are beginning to turn around.
Industrial metals like copper, nickel, iron and steel have all rebounded in recent months as traders bet on improving global economic conditions would bolster demand for the base metals after prices hit multi-year lows.
“Reports that Chinese steel and iron prices rose sharply in the world’s most populous nation spilled over into copper trading as traders noted domestic Chinese inventories of industrial metals has been falling. Traders are starting to embrace the notion that we may be starting to see Chinese infrastructure spending increasing, which if accurate and sustainable, could be a signal that a near-term low may be forming for many products in the industrial commodity sector,” according to Options Express.[related_stories]