In the industrial metals complex Commodity Trading Advisors (CTAs) have turned sellers of Zinc, Lead and Nickel, while Copper sees a continuation of the early week rally, TDS commodity analysts note.
Copper grows, other metals sell off
“In the industrial metals complex CTAs have turned sellers of Zinc, Lead and Nickel. Meanwhile, the failure of Copper to see a continuation of the early week rally is seeing the selling trigger creep closer to market yet again, with the first key downside momentum trigger sitting at $9,598/t.
“After briefly covering shorts and building a small net long position, top traders on the Shanghai Futures Exchange (SHFE) have once again liquidated positions, bringing the red metal into a net short territory again.”
“With our gauge of global commodity demand continuing to weaken, while depressed premiums and surging inventories in the Middle Kingdom argue against fundamental tightness, there are plenty of potential catalysts that could still see prices ease once again.”
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