The recent fall in the price of copper surprised me, it’s dropped back to where it was in October 2021, while bonded stock level remains steady.
It appears that traders don’t want to be caught holding stock as the world goes into a global recession caused by the recent jump in fuel prices and war between Russia and Ukraine.
Digital trading speeds up changes in commodity prices as algorithms react to negative market sentiment and I expect that the price of copper is entering a period of extreme volatility as trading adjusts to the first negative market since 2020.
Copper is unlikely to fall all the way back to it’s pre Covid price of £5 / kg because of higher energy prices but could easily fall to £6/kg over the coming months.
