While September copper prices are showing some initial weakness this morning, the action this week has been pretty impressive relative to other metals and physical commodity markets! In fact, September copper has managed a pattern of higher lows and higher highs this week. Asian copper prices did manage a slight rise overnight as the trade continues to toss around the idea that Chinese copper demand in the second half of 2012 will rebound as the Chinese government reacts to countervail the slowing trend of the Chinese economy. Those improved demand hopes might have been the result of a sharp jump in Japanese copper exports to China in the month of May. However, the EU condition is at least partially restraining copper prices and the end to the summit ahead could bring about a bout of volatility in copper prices. While the slight upward track in copper prices this week seems to fly against the fundamental news flow, copper into its recent lows, might have been one of the most oversold physical commodity markets from a non-commercial and non-reportable net spec short positioning standing. In the near term, the copper market looks to take its initial direction from US equities, then from US scheduled data and finally copper will probably take some direction from the action in European equities into their close later this morning. LME copper stocks overnight were up +1,225 tons to stand at 256,100 tons.
Join the Discussion