At the margin we find copper driven very much by headline news flow. This morning we have the global bellwether for economic growth latching on to data released out of China yesterday namely the Industrial Production figures and better COVID-19 headlines. The fact of the matter is that the bulls will attach a long trade to anything at the moment given the strong fundamental support for copper. We do however warn that copper is massively overbought in the short term and due a correction.
Global copper smelting activity is on the increase with satellite data provided by SAVANT showing that there were large increases in the EU, China and South America. There was however a decrease in the United States which may be attributed to maintenance or lockdowns. The smelting is however uneven with smelting in the EU and South America expected to soften while China is starting to accelerate again.