Demand for industrial metals weakens – TDS
|Downside momentum has proven resilient in industrial metals, despite lingering hopes of new Chinese stimulus as our gauge of commodity demand continues to weaken amid a precarious global macro landscape, TDS commodity strategists note.
Copper is flat, other metals to slide lower
“Top Shanghai Futures Exchange (SHFE) traders have liquidated their Copper length and are now holding a fairly flat position, highlighting those on the ground in the Middle Kingdom may not be buying into the stimulus talk just yet.”
“Elsewhere, AUM for base metal specific ETFs have also notably declined, while money manager positioning is also coming off the euphoric highs for the red metal, and there could still be additional downside in the near-term as bloated positions continue to unwind.”
“For now, Commodity Trading Advisors (CTA) positions remain safe with a large margin of safety before the next selling trigger at $9,104/t. Elsewhere, Aluminum prices are in the crosshairs with CTA selling triggers sitting at the $2,400/t level, while Zinc and Lead could also be at risk of selling.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.