"Doesn't cutting production result in higher cost due scarcity...

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Polar2Bear

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27/05/24

23:49

Post #: 74034626
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Originally posted by fuhc46: ↑

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

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“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?

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

CN have built a rather large buffer that will mitigate the impacts of supply scarcity. It will no doubt be used to dampen large price shocks to their important construction and manufacturing industries. Given your affinity for charts, warehouse stock would be a useful indicator to track .

HGO Price at posting: 8.3¢ Sentiment: None Disclosure: Held
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(20min delay)
Last 6.6¢		Change 0.001(1.54%)		Mkt cap ! $138.3M

Open	High	Low	Value	Volume
6.5¢	6.6¢	6.5¢	$145.1K	2.226M

Buyers (Bids)

No.	Vol.	Price($)
3	303540	6.5¢

Sellers (Offers)

Price($)	Vol.	No.
6.6¢	742146	2

View Market Depth

No.	Vol.	Price($)
3	303540	0.065
6	1084250	0.064
5	600888	0.063
3	332265	0.062
4	422471	0.061

Price($)	Vol.	No.
0.066	742146	2
0.067	601798	5
0.068	254144	2
0.069	169000	1
0.070	384337	8

Last trade - 16.10pm 25/06/2024 (20 minute delay)

HGO (ASX) Chart

"Doesn't cutting production result in higher cost due scarcity...

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"Doesn't cutting production result in higher cost due scarcity...

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End of FY is a time to juggle wins, losses and capital gains taxes

Eurozone-based companies find new ways to secure a regional lithium supply

Sun Silver submits US$60M Silver Paste Funding Application to US DoE

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