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Hope you are right Snout. Notice that MIN is having a rally...

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paddington bear

18,248 Posts.

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11/09/24

10:21

Post #: 75622752
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Originally posted by snout ↑

When it all seems dire with the economy you can be sure it is not as bad as it looks.
Current oil and copper prices would have us believe we are entering dark times, but are we about to begin the downturn or have we had it?
Australia is not technically in recession and I doubt we will get there...despite Bullock doing her best. Until governments stop constantly pumping cash into the economy and also start seriously addressing 'sellers' inflation' and corporate profiteering once inflation has taken hold, we are left with bludgeoning demand with higher interest rates. The Reserve started raising too late and may well begin lowering too late for some people's comfort.

Copper is doing fine, just needs to reset after its run earlier this year

"Benchmark Minerals Intelligence says evidence of a pick-up in China’s copper demand has been mounting recently and that dips below US$9000/t will be short-lived as macro machinations for red metal see price levels remain strong.
“SHFE copper inventories plunged by 26kt last week – the ninth consecutive week of drawdown to the lowest level since March. Meanwhile, CIF Shanghai imported copper cathode premiums shot up to the highest level this year of US$60-76/t according to Mysteel,” BMI wrote in a note today.
“While the outright drop in copper prices incentivised some opportunistic restocking, the increase was also bolstered by a third consecutive month of pick-up in utilisation rates at cathode-fed semis plants, offsetting growing scrap supply tightness, which has caused many secondary wire rod producers to cut production."

COPX has essentially gone sideways for four years, when it does get going it will be a massive run.
FCX looks good for a bounce here at least.

I suspect Christmas will look brighter than what the current mood suggests.

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Hope you are right Snout.

Notice that MIN is having a rally today. About time.

XSO Value at posting: 2,916.9
1 Upvote

0 Great analysis

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