MB ASIA COPPER CONF: Fundamentals, shorts, weak oil market all dragging on copper prices: Freeport

Alongside the bearish combination of higher copper output and slowing demand growth, increased short positioning and the collapse in oil prices are also weighing on the copper market, Freeport McMoRan’s Javier Targhetta said in Shanghai as prices slumped to new six-year lows.

“I think it’s very important to distinguish between the various forces that influence copper price. On the one hand you have supply and demand, and in that regard I agree […] that it will take some time to reach a point where the supply curve crosses the demand curve,” he said during the keynote panel at the 11th Metal Bulletin Asia Copper Conference on Wednesday November 18. But the copper price is also being influenced by an increase in speculative short positioning and weak sentiment across the commodities markets overall following a 50% drop in the oil price over the past 12 months, Targhetta said....

Published

Mark Burton

November 18, 2015

04:15 GMT

Shanghai