Industrial metals are melting lower amid concerns around Chinese demand, analysts at TD Securities noted.
Copper faces a moderate sell-off
“Reports that Chinese fabricator demand for copper has been muted are weighing on the red metal, particularly as inventories around the globe increase.”
“Physical demand signals have been clashing with extremely bullish money manager positioning for months, and with little signs of tightness materializing, there have been signs these investors have started to unwind their positions.”
“With that said, Commodity Trading Advisors (CTAs) remain comfortable with their length above $9,428/t, however, top Shanghai funds who had bought recently are now liquidating their recent purchases. Elsewhere, CTAs are sellers of zinc and lead on the day, and modest buyers of nickel.”
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