Low inventories across the copper supply chain mean that any resolution to the U.S.-China trade war could trigger a snap rally in prices as consumers rush to restock, market participants said on Tuesday.
“Trade war concerns have been going on now for over 12 months and, understandably, participants all the way through the supply chain have de-stocked to reduce risk,” said Guy Wolf, head of market analytics at broker Marex Spectron in Singapore.
“But once the market has certainty about the trade and tariff outlook… the psychology will completely flip, because everyone will want to restock. They’ll fear that prices will run away from them,” he said on the sidelines of the conference.
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