“Speculators are piling into the long side of the market,” Phil Streible, a senior market strategist at RJO Futures, told Bloomberg. “There’s speculation as far as how infrastructure will play out in the new presidential role. It will get the aggressive buying coming back in. Copper may resume its rally up to the most recent high.”
Meanwhile, supply looks balanced in September, compared to a surplus of almost 135,000 metric tons in August. ING argued that the market’s small surplus could continue to narrow during the remainder of the year from stronger manufacturing PMI data out of China. Goldman Sachs also pointed out that purchasing managers’ indexes strengthened in all major regions in October.
For more information on the mining sector, visit our metals & mining category.
Global X Copper Miners ETF