Furthermore, with the market in deficit for the past three consecutive years, industry stocks are below critically low levels and the stocks-consumption ratio is forecast to remain below four weeks over the next three years and should continue to underpin strong copper prices.
The ( zinc ) concentrate market is already so tight, this is the last thing the market needs.
Speculators and investors have the precious metals market in their tight grip and are just forcing prices higher.
However, the market may be prone to wide trading ranges and choppy price movements while current consolidation continues, with more liquidation possible in the absence of upside momentum.
The market remains fund-driven. No one wants to go short while consumers buy in dips and producers are reluctant to sell, hoping for yet higher prices.