Copper: The China Effect

Three-month copper has posted significant gains since early March, rising by 42.2% over the period. The bounce in copper markets was largely on the back of a technical correction, combined with stockpiling by the Chinese government and a rally in equity markets. At present, copper prices have softened slightly, but we believe they remain overextended to the upside. From a technical perspective, three-month copper bounced off support at US$4,364/tonne.

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