I agree that “The current fall in the Cu price from US$5.00/lb...

I agree that “The current fall in the Cu price from US$5.00/lb in early Mar'22 to US$3.25/lb is purely fear of a fall in demand amid recessionary forces. This won't last for long.”

Here is some good news:

$220bn stimulus on the cards for China: Great for commodities, bad for inflation

marketindex.com.au/news/usd220bn-stimulus-on-the-cards-for-china-great-for-commodities-bad-for

KEY POINTS

China is considering fast-tracking a US$220bn bond package for infrastructure spending

This would be the first time bonds are sold before the start of a new year

The stimulus comes at the worst possible moment for Western economies, desperately trying to cap inflation

Back in April at the peak of metal prices, the major media were talking about LME metal inventories plunging to critical levels and risking more squeezes. Copper production in Chile decreased 2.7 percent from a year earlier to 480.3 million tonnes in May 2022. One would’ve thought the supply problems have worsened, in spite of softened demand in China due to the pandemic, the copper price should at least maintain steady. Instead, it declined sharply ever since. I feel that metal prices are manipulated to counter inflation. I can’t see this decline going much further/longer, even with less Chinese stimulus.

bloomberg.com/news/articles/2022-04-07/lme-risks-more-squeezes-as-metal-stocks-hit-lowest-in-decades#xj4y7vzkg

LME Risks More Squeezes as Metal Stockpiles Hit Lowest in Decades (ByMark Burton and Jack Farchy, April 8, 2022 at 5:34 AM GMT+10Updated onApril 8, 2022 at 7:18 PM GMT+10

copyright link/markets/commodities/lme-metal-inventories-plunge-to-critical-levels-20220408-p5abwl

LME metal inventories plunge to critical levels (by Alex Gluyas, Apr 8, 2022 – 12.35pm)

“Inventories of base metals in London Metal Exchange warehouses have plummeted to critically low levels, sparking fresh concerns of a spike in prices that would leave physical commodity markets vulnerable to a short squeeze. Available stockpiles across the six main contracts on the LME – copper, aluminium, zinc, lead, tin and nickel – have fallen to the lowest level on record based on data going back to 1997, Bloomberg says.”