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Copper rebounds as supply deficit widens in June, Commerzbank says
Commerzbank cites International Copper Study Group data showing a June undersupply of about 85,000 tons after seasonal adjustment, shrinking the first-half surplus to about 32,000 tons.
Copper prices are rising again as supply tightens, according to analysis from Commerzbank strategist Barbara Lambrecht, using data from the International Copper Study Group.
Commerzbank points to a significant June deficit of about 85,000 tons after seasonal adjustment and says the surplus for the first half of the year fell to about 32,000 tons.
The bank attributes the tightening balance to weak mine output outside China and Congo, production issues in Chile and the DRC, and concerns tied to rising cancelled LME warrants.
Commerzbank also notes that while LME copper stocks have risen slightly, orders for withdrawals of LME copper have jumped by more than 50,000 tons, supporting a more favorable copper price environment.
Latest closeCopper $6.606 ▲0.2%