Commodities: Copper
With the Middle East conflict and oil market shock driving risk aversion, copper is likely to start softer or trade cautiously early today, particularly as the US dollar and safe havens rally. However, because copper’s fundamentals (like industrial demand and supply/demand tightness) remain in focus, buyers are likely to remain active into any meaningful pullbacks.
Hi Market Matters Team
Can I have your current view on Capstone Copper?
Would you be buying CSC for copper exposure? If so at what price?
Emeco reported yesterday and came off around 9% – where do you see EHL trading ? Would you continue to hold?
regards
Deb
Slightly soft financial metrics for the first-half relative to consensus, but a big uplift in earnings YoY underpinned by stronger copper prices, higher volumes and improved operating leverage across its core assets.
BHP delivered a solid result, with headline profit inline with expectations, as BHP continues to demonstrate operational resilience with improving momentum in copper.
Since late Januarys “blow-off” style move above $US14,500 copper (Cu) prices have consolidated around $US13,000 with related stocks following a similar path. Further upside is our preferred scenario over the coming months after further sideways action with an eventual test above $US15,000 later this year our current target.
At the end of January, copper surged by the most in more than 16 years as metals extended a dramatic start to the year fuelled by a wave of intense speculative trading focused in China. In similar fashion to precious metals last week delivered some relative calm with demand for future global electrification appearing to support the industrial metal into dips.
This morning we have used the US traded Comex Copper (Cu) contract as it shows a more transparent 24-hour picture as opposed to the LME contract, which is actually more important to the ASX producers.
Early last week we saw copper surge by the most in more than 16 years as metals extended a dramatic start to the year fuelled by a wave of intense speculative trading in China. Chinese investors piled into metals as they rode a powerful wave of momentum that lifted everything from tin to silver to record highs until of course the last 48-hours dramatic unwind.
A group called Broker Consensus has a price forecast on RIO of 384.19 % or, $741.00. I didn’t see a price forecast on MM’s report (it is possible that I missed it).
