When Dr.Copper is soaring to two-year highs it is "unequivocal" proof the world's economy is back on track. However, as the industrial metal drops to one-month lows amid the biggest inventory build in 15 years, slowing China growth, and plans to raise China capacity – analysts are quiet at the economic PhD metal's demise.
Yesterday saw the biggest inflow of the metal in 15 years to warehouses managed by the London Metal Exchange, according to bourse data released Monday.
And while China lowered its growth expectations, China's second-largest copper refiner has decided to ramp up production (as Bloomberg reports)
Prices will end the year lower than where they started, Jiangxi Copper Co. Chairman Li Baomin said Sunday in an interview in Beijing as the government announced growth plans for 2017.
Jiangxi Copper plans to increase production to the maximum capacity of 1.36 million metric tons, compared with about 1.2 million tons last year, he said.
And copper prices have tumbled to one-month lows…
Breaking below the crucial 50-day moving average…
Jiangxi's Li sums up the situation perfectly: "There are things worrying us."
via http://ift.tt/2lY6zD8 Tyler Durden