Second Quarter 2020, page-69

Earlythis morning I got the AFR and read

Copper heads for historic squeeze with China's demand red-hot

Mark Burton and Libby Cherry

Sep 4, 2020 – 5.24am

Theglobal copper market could be on the cusp of a historic supply squeeze asChinese demand runs red hot and exchange inventories plunge to their lowestlevels in more than a decade.

A growing chorus of traders andanalysts say those dwindling spot reserves could trigger a further surge inprices, building on a rally that lifted copper this week to two-year highsabove $US6800 a tonne.

Citigroupanalysts advised clients this week that a price of $US8000 is plausible ifglobal stockpiles drop to near the levels seen in 2011.

Red Kite Capital Management fundmanager George Daniel said the market is starting to resemble that of the early2000s, when a similar Chinese buying spree emptied the world's warehouses ofcopper and sent prices vaulting to record highs.

The 24 million tonne-per-yearcopper market has experienced bouts of tightness ever since the early days ofChina's industrial expansion, but that country's rampant appetite afteremerging from coronavirus lockdown could usher in a period of chronicundersupply.

China's Caixin manufacturingpurchasing managers' index for August reached its highest reading since January2011, with copper usage surging as factories pump out cars, householdappliances, smartphones and electrical cables.etc

Yes, I thought, OZL will do well today. I guess I didn't my handout of free lemmings