China's copper exports have surged to record levels, leading to concerns about oversupply and downward pressure on global copper prices.
Until the Chinese government introduces more robust stimulus packages to counter soft economic data and exporters in the world's second-largest economy ease up on flooding global markets with copper, prices of the base metal—crucial for power lines and AI data centers—are expected to remain under pressure.
Traders have also been watching for signs of recent price declines stimulating buying from manufacturers. But traders and analysts remain doubtful that demand will rebound meaningfully. 'With Chinese smelters still delivering cathode into bonded warehouses owing to the open export arbitrage, it still feels too early to say we are at the bottom of the current copper price cycle,' Colin Hamilton, managing director for commodities research at BMO Capital Markets, wrote in a note to clients.
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