IKN

Take physic, pomp

Copper, China, Fed

Who do you believe?

The people talking prices down, or the buyers?

PS: Personally, I believe Richard Adkerson of Freeport (FCX). His words today:

“Even last year, with China having all the Covid problems and the supply chain problems, copper demand grew. At a lower rate than historical rates, but it still grew. China consumes half the world’s copper, we’re the world’s largest exporter of copper concentrates and China smelters are important customers of ours. We diversify our customers so we have customers in South Korea, in Japan and in Taiwan, but the demand has just been consistently strong

“Copper markets globally, not beyond China, are tight. Back in the second half of 2022 on our earnings calls I kept talking about the disconnect between the financial markets views when investors were running away from companies like ours and what we were seeing dealing with customers, not just in China but even in the US, there’s strong demand for downstream copper products, so if and I can come up with scenarios in either way about the direction of the world in the short-term, but if things are better than many expect, it’s going to be interesting because the market’s so tight.

“We see copper demand remaining strong, even in Europe.”

7 Comments

    Dr Copper is performing free prostate exams today.

    Reply

    Shanghai -26000 ton this week, -11000 ton last week…

    Reply

    Congratulations if you have sufficient knowledge of global supply/demand dynamics for copper (or any other commodity) to make investment decisions.
    FCX: “strong demand for downstream copper products” – “scenarios in either way”. “markets so tight” LOL.

    Reply

    Looking at the above chart, I would say the downtrend could well continue as a result of speculative activity, unless it suddenly gains upward momentum again due to warehouses being depleted. However, the possibility of an agressive sideways movement resulting from a tight trading range should not be discounted.

    Reply

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