Focus on the fundamentals
While the macro backdrop has become more challenging for copper due to rising US-China trade tensions, let's focus on the fundamental indicators of the market to gauge the current tightness of the refined copper market and better assess the future direction of copper prices.
Source: Orchid Research
In our previous article (Copper: Patience Required, May 10, 2019), we argued that investors should wait a little longer before going long the iPath DJ-UBS Copper Total Return Sub-Index ETN (OTCPK:JJCTF), partly because Chinese demand for refined copper has failed