Copper prices have rebounded by as much as $500 from the six-year lows seen on Tuesday, after the Chinese government took further measures to catch freefalling domestic stocks.
However, with more than half of all Chinese equities suspended and with large investors prohibited from selling their positions, conditions in the stock market can hardly be said to have returned to normal.
Focus on the cost curve
In isolation, this week’s whipsawing moves are not going to have a meaningful impact on the supply side of the equation either, but deeper or more sustained prices declines could cause problems for high-cost operators, market sources told Copper Price Briefing.
“The last time...