BEIJING (Commodity Online): Copper and other base metals, performing well so far in the New Year, could recede with the Chinese New Year holidays approaching next week, said TD Securities in a snippet.

 Better-than-expected U.S. and Chinese economic data have enabled investors to focus on the positive and ignore Europe’s ongoing problems. However, TDS cautions that the structure of the copper price curve has shifted from backwardation, normally seen a sign of tightness, back into contango.

“Historically, Shanghai prices entering a contango structure have preceded times of downward pressure on market price. Also, reports indicate that China’s demand for Copper has been weaker than normal as they prepare for the Lunar New Year holiday week. The combination of these two factors could find the copper price some downside pressure in the week ahead,” TDS concluded.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook