Dated 26/5, Source:...

Dated 26/5, Source: https://summamoney.com/investing/the-daily/commodities-on-cusp-of-super-bull-rally-after-traders-cash-in/

Snippets
“Gold, copper, and silver, some of the recent high-flying metals, all ran into profit taking [last] week,” said Ole Hansen, head of commodity strategy at Saxo Bank. “We maintain a positive outlook and suspect traders and investors will maintain a buy-on-dip strategy across all three metals.”

Copper was hit by the largest bout of selling last Wednesday (Thursday AEST), slumping over 4 per cent in what was its largest decline in almost two years.

“Factories in China are increasingly struggling to pass on the higher cost of copper to clients,” said ANZ senior commodity strategist, Daniel Hynes. “This is leading to weaker output of copper products such as wires and rods.”

Chinese fabricators are expected to cut run rates at factories to 66 per cent of capacity this month, from 68 per cent in April, a survey conducted by Shanghai Metals Markets showed. That’s the lowest level for the season since at least 2017.

Doesn't cutting production result in higher cost due scarcity especially if copper demand is still high?