dinsdag 22 januari 2013

Copper Contango Update

The contango on copper has been topping out as the LME stock level has also topped out. As copper goes back to backwardation, I see the copper price go up from here. It already spiked back to $3.68/lb which is the highest since October last year. And stocks are following nicely with this uptrend.

Chart 1: Copper Contango Vs. Price

2 opmerkingen:

  1. The source of the Contango is a short term supply shortage as demand from China is picking up, according to Bloomberg: Copper Seen Extending Rally With China Accelerating.