Dow is certainly looking scary. Talk is of a capitulation in sight. Seems hard to believe after last years losses, but it also seems hard to see any positive sentiment in the short term.
I'm increasingly feeling that the POC will recover quicker than we first thought. Given the current climate and the fact that exploration has basically stopped, the big copper users will be aware that there may be significant long term copper shortages. Therefore, I think we can expect more buying in anticipation of long term shortages than we thought (i.e. consumers increasing private stocks). The Chinese are the obvious example, but others will begin to follow once there is light at the end of the tunnel. This is likely to support prices short term and drive prices higher (quicker) in the medium term.
Cheers
PNA Price at posting:
15.2¢ Sentiment: Buy Disclosure: Not Held
