The copper market has started out weaker but prices have been able to remain within relative proximity to yesterday's highs. Apparently the copper trade wasn't particularly impressed with the turn of events from the BOE meeting minutes, as the head of the BOE MPC wanted more easing and he was voted down! With the US President suggesting from the G20 meeting that there would be no "silver bullet" solutions to the EU crisis, which would seem to extend the fear and uncertainty toward that situation. With the markets generally seeing the BOE action as stopping short of what will eventually be needed, the question immediately becomes will the US Fed do what is needed, or will the central bankers around the world wait for even weaker economic activity and even higher sovereign debt costs ahead, before acting aggressively. While Asian copper prices were higher, the Shanghai composite index was weaker and it would appear that a number of copper players are concerned, as opposed to hopeful of some aggressive action from the US Fed. In other words, July copper doesn't appear to have as much Fed expectation built into prices, as other metals markets. LME copper stocks overnight declined by 1,325 tons to stand at 250,350 metric tons.
Follow us on LinkedIn