Jump to content

Copper price: trading the ‘demand destruction’ in base metals


Recommended Posts

Outlook on the price of copper as it breaks the $8,000 level on the LME.

 

 Jeremy Naylor | Writer, London | Publication date: Friday 01 July 2022 

Copper has just broken the $8,000 level on the London Metal Exchange (LME) and other base metals are following suit.

As IGTV’s Jeremy Naylor explains this level of demand destruction is seeing a short trade win out, not just for copper but many other base metals, including zinc and aluminium.

Massive demand destruction

There appears to be massive demand destruction in base metals.

This is most notably seen in today's session, with Copper having dropped below the $7,000 a tonne level the LME. The LME is the benchmark price for raw copper.

Copper chart

Let's take a look at the price of the copper chart, because as of this moment we're down 26.5% from the highs we had back on the 7th March and we're now trading at 7981.

Now Bloomberg is quoting Wei Lai, an analyst with TF Futures, saying there are mounting concerns about global demand for the metal. The copper market, he said, will face a surplus of about 10% of the total supply in the coming two years based on a situation of a hard landing for the US and European economies.

It doesn't stop there either because the short trade, and if you do go short on this your stock goes above the highest point of today's candle at around about the 8290 level, if you're short on this because this now seems to be having support down here at 7685 which were the lows that we had on this chart here back in February 2021.

Zinc

But it's not just copper, it's other base metals as well.

Look at the way in which Zinc has fallen below support in today's session, now at 3046. Same sort of way to approach this if you're short on this, next price target is down here the lows that we had back in September 2021 and most base metals are having the same sort of story. You can see today we've dipped below this 2424 support for aluminum.

Aluminum now has a price target of 2304 which are the lows we had back on the 24th May. So it certainly seems like base metals are getting beaten up.

 

 

ig group.PNG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • We are currently being treated to a new generation of metaverses and gaming, where AI agents compete with each other, interact, and support human actors. As AI and NFT innovations refine further, the team of Altered State Machine (ASM) has come up with a decentralised protocol for creating ownership of an AI agent via an NFT.   The team understands that NFTs are another ground-breaking use case for blockchains, while Artificial Intelligence will be the heartbeat for the next wave of online experiences, including gaming, art and commerce. Hence they've built ASM to facilitate the creation of Agents for games, financial applications, virtual assistants, online worlds, etc.   Designed with the vision to be the protocol for ownership and monetisation of A.I.'s using NFT technology, Altered State Machine provides any application such as game, metaverse etc the ability to create A.I. Agents which are owned as an NFT. Its use cases range from Game players / characters to Metaverse assistants, DeFi trading bots, Chatbots, Digital twins (e.g. "Super Siri") and Advertising.   ASM ecosystem is governed by a robust token, ASTO, which is primarily used to enable the DAO to manage and grow the ASM ecosystem over time, and can also have transactional uses within the ecosystem. Other use cases may include: Governance (creating proposals for, and voting in the ASM DAO), AI Agent Training, Minting Agent NFTs within ASM universe world, Minting Agent NFTs within non-ASM universe worlds, Powerups, instant improvements, items and skins.   By holding ASTO, users will be able to access various features and in turn earn rewards for using their tokens, and also for their engagements within the ecosystem. Interestingly ASTO token trading opened on Bitget on 26th Feb, with an ongoing deposit to earn event to incentivize depositors.   Aren't you excited about the future of AI and NFT innovations with projects like this?
    • It's common knowledge that copy trading can yield lucrative returns with the right approach, and Bitget exchange has streamlined the process by offering access to top-tier traders to emulate.
    • The introduction of Altered State Machine (ASM) marks a significant development in the NFT space, introducing novel applications through AI integration. Collaborations with industry leaders like FIFA and Non Fungible Labs highlight the project's potential for success, especially with the forthcoming listing of $ASTO on Bitget exchange.
×
×
  • Create New...
us