The price of copper has nudged up to £6.66 / kg over the least week even though bonded stocks also increased to 169 kT.
With supply exceeding demand I expected the price to start falling, but the rapid rate of vaccination in the US and continuing economic growth in China is creating expectations of demand once again exceeding supplies.
Meanwhile Chile is experiencing a new wave of Covid infections, even though it has a successful vaccination programme using a vaccine from China. This may disrupt supplies from one of the worlds largest copper producers in the short term, but also illustrates the potential risk of vaccinations alone not stopping future Covid infection waves.
I’m still short on the price of copper and miners will be rushing to fill orders while the contract price is still over £6 / kg. Also, the larger the stocks before the price corrects the sharper the correction will be.