The rather hopefully named Beijing “bazooka” was expected to be followed up by another stimulus blitz on Tuesday, this time from China’s National Development and Reform Commission focused more on fiscal policy, infrastructure investment and the energy transition
Traders sold off copper after Tuesday’s briefing turned into a damp squib with losses for the copper price after the run up now going beyond 7%.
Moreover, hopes of market conditions forming similar to that of May when copper hit a record high of $5.20 a pound or nearly $11,500 a tonne, are now looking less likely.
Benchmark Mineral Intelligence points out that the persistent contango on the LME throughout the recent rally added to the sense of caution over copper prices running ahead of fundamentals, with some drawing parallels with the fund-fuelled price rally in the second quarter:
“Indeed, last week’s Commitment of Traders report from the COMEX…
