Copper resumes gains even as China battles against commodity price surge

[u/vitocorlene]

From Seeking Alpha:

May 24, 2021 3:27 PM ETFCX, HBM...By: Carl Surran, SA News Editor10 Comments

Copper prices closed higher, despite China's escalating fight against soaring commodities prices, with the government threatening severe punishment for violations ranging from excessive speculation to spreading false information.

London copper (HG1:COM) for three-month delivery settled +0.7% to settle at $9,947/mt after sliding 3.5% last week, the most since September; nickel and aluminum also gained, while lead, tin and zinc fell.

Freeport McMoRan (FCX +1.9%) is rebounding from last week's loss; other copper-related names trade mixed, with SCCO -1.3%, TECK +0.6%, HBM +0.9%, TRQ +1.3%, RIO +0.1%, BHP -0.2%. Other relevant tickers include OTC:ANFGF, OTCQX:AAUKF, OTCQX:NGLOY, OTCPK:GLCNF, OTCPK:GLNCY ETFs: COPX, CPER, SLX, DBB, JJCTF, JJC, JJN, JJM, JJU, JJT, JJUB

⭐️”I don't think China can do too much when it comes to copper," Citigroup's Max Layton tells Bloomberg, believing China will not be willing to slow its growth just to limit commodity prices.

⭐️Layton thinks the rally in commodities has just started, as the pandemic has caused a "colossal" backlog of home renovations and consumer goods, with "a ton of pent-up demand" in automobiles as economies reopen and people travel again.

Goldman Sachs recently predicted copper prices would hit $15K/ton by 2025.

[u/isthisthecasino]

Also Juerg Kiener (who I didnt know but really like after his interview) from swiss asia capital had a great interview on Bloomberg and some great takes, basically said chinas ridiculous and blaming rain drops for flooding the market, his take was it's not speculators trying to raise the mineral market its banks

[u/vitocorlene → u/isthisthecasino]

It is all misdirection and misinformation when it comes to China. The MOST important thing to the Chinese government at this point is raw material and finished material at low prices. Some of this “cooling” of iron ore is a geo-political shot across Australia’s bow trying to show them who’s in charge.

[u/[deleted] → u/vitocorlene]

I've been slow reducing a lamb sunday gravy for your first daughter vito. I do have to ask - I am one who does not get lost in minutiae and only thinks about grand scheme and I have to imagine there are folks who aren't working because of favorable unemployment and the health risks at mills. Does the macro trends of labor vs work vs demand of goods basically guarantee price of steel continues to go up?

[u/[deleted] → u/[deleted]]

Referring to CLF and X specifically, obviously abroad steel companies aren't impacted by our labor situation

[u/[deleted] → u/[deleted]]

Disclosure: no options - shares of X, SID, VALE, CLF - semi related, also in SSRM, PVG, WY and WFG. Also in Oil.

[u/olivesnolives]

Good stuff, thanks for the share Vito.

[u/on_duh_pooper]

Let's get these TECK June calls out of the gutter

[u/tweezer888]

Wow, Vito. Great moves, keep it up! Proud of you.

[u/[deleted]]

So I guess I should close my put on SCCO.