ICBC Standard Bank expects the price of copper to recover toward $7,000 per tonne because investors have overstated their worries about the effects on demand arising from the trade tensions between the United States and China.
Copper was priced $6,067 per tonne on the London Metal Exchange on Monday November 12, basis three months delivery. Over the past six months, the LME copper price has only exceeded the $7,000 threshold for two weeks in June, when the market was concerned about trade tensions.The price swings were more likely to have been caused by "macroeconomic, geopolitical and financial market gyrations" than by changes in fundamentals, the bank said in a note on November 12.While demand has remained relatively steady through the course of this year, despite geopolitical...