HEFFX are looking for a rally in the Copper market going in to 2018
HEFFX are focused on Copper reserves in and around emerging markets in Asia and MENA.
Stronger Chinese demand for copper in recent weeks is unlikely to last or to signal a broader recovery for the metal often regarded as a bellwether of economic growth, according to industry sources and a delve into data.
A surge in Chinese imports of copper is mainly due to buyers taking advantage of low prices to restock, rather than representing increased industrial consumption of the metal widely used in the power and construction sectors.
This would mean the upturn is likely to be just a blip in the longer term slowing in copper demand growth in the world’s biggest consumer of the metal.
It would also dash expectations of stronger prospects for the Chinese economy, where growth looks set to slip to a 25-year low this year.
But long term HEFFX see Copper as one of the first Commodities to see a sustained recovery.
“Copper may not have bottomed yet, and there is a long way to go before we see solid Copper prices but by 2018 we expect the market to be strong” said HEFFX in a note to traders today.
The total net long position of funds trading copper on the London Metal Exchange rose to 21,960 lots on Oct 30 from 14,852 the previous Friday, the exchange’s Commitments of Traders Report (COTR) showed on Tuesday. LME-CA-MNET
Money managers’ net long position fell to 43,197 lots from 80,886. One lot for both copper and aluminium is 25 tonnes.
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