By Jonathan Barratt


Inventories in the copper market continue to come under pressure and as we have seen a good lift in prices already, we can suggest the trend is here to stay for a little while longer. Why would this be the case when all we hear on the wires is a negative economic outlook and possibility that the slow economic growth will be the rule rather a short-term trend?

This is where it becomes interesting. Last week we discussed the on going demand associated with the massive infrastructure spends in India and China. This we know will continue; however if you combine this known fact with continual draws in inventories around the world then a picture of a shortage in supply emerges.