Copper Futures Crash Below $2 For First Time Since 2009
Dr. Copper is sick. For the first time since May 2009, Copper futures prices traded with a $1 handle this morning ($1.99) as Nomura analysts warn the commodity is likely to see more downside risk over the medium term as the market is expected to remain in surplus through the end of the decade.
As Bloomberg adds, Nomura's Patrick Jones warns:
Copper demand could see 2m-3m mt/yr “demand destruction” led by substitution of the metal by using aluminum and other materials.
Expects substitution in autos, air conditioning, power distribution cabling rising over next several yrs
Despite RBC noting yesterday, copper price should now be reasonably well supported at $2.08/lb vs historic cost support at 90th percentile of cash cost curve (at $1.98/lb), though if market remains in surplus, further downside risk exists
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Dr. Copper unfortunately has a pretty good record of forcasting.
Expect no different this time.
In February of 2015... SocGen report showed funds massively long oil when Brent wss over 40 and short copper. So question is, what is max pain? http://hedgeaccordingly.com/2015/02/hedge-funds-are-massively-long-gold-...
Insiders were warned and flipped.
Others, not so much.
It's gotten so stealing the copper out of my neighbors' houses while they are away isn't even worth it any more.
I'll say it again for the cheap seats: THIS TIME IS DIFFERENT!!! /s
Maybe but it can all be just TRANSITORY. Idiots at the FEDERAL RESERVE. But also SOROS said that this is like 2008, didnt he?
WTF? Get out of my head!
I wonder what the meth addicts will steal next?
Well, if the banking industry were required to engrave their worthless financial instruments on sheet-copper it might help. The largest part of our GDP is worthless, destructive, fictional, financials.
Dr. Copper is going to need some help in OR.
Blood is everywhere.
Good. A second still is looking more and more affordable.
i bought a 20 gallon still for SHTF scenerio....... just in case the credit markets freeze up and i need to make my own!
Well, cheap commodities (corn and sugar) + cheap copper + cheap natural gas...
What the fuck else are you going to do?
There is a learning curve associated with that. At least with small batch bourbon production. Not that I'd personally know anything about that...
My A/C compressor is safe for another year.
Smoke em if you got em!
Shit's getting real!
Yup, the Chinese "changed the rules" again. This will have the opposite effect. Folks will sell fucking everything in site lest they "change the rules" tomorrow.
Dr Copper, we hate to inform you that we need to call in hospice care for you...
Malinvestment WILL be unwound, one way or another.
Duck and cover.
This is a copper-bottomed market.
Oops, no it isn't.
Dr copper is sick.
Obama, what a recovery! Keep on repeating to yourself libtrards, while bowing to your messiah.
I have prayed for years that the next collapse would at least have the courtesy of happening on Obama's watch. So I can say "Obama's fault" for the next 15 years.
I'm blaming it all on Bush.
The "Obama Depression" just has a nice ring to it. Or maybe, the "Mocha Depression". "Dindu Depression"? Yeah, I vote for the "Dindu Depression". "President Obama dindu that to the economy!"
My buddy just called, asked " what's up?"
I said I was watching the market open, before getting out to work.
He laughed, and said " who cares?"
That's most of the USA.
We should have CNBC and Bloomberg and any other business news channel toss around footballs and dress in silly uniforms while delivering the financial news. That would attract the Average Idiot American.
CNBC and Bloomburg......LOL......I am just happy they arent wearing tutu's and assless chaps... with fucking glitter EVERYWHERE!
For that would definitely attract the ........ oh never mind!
To borrow a quote i heard from someone on the teevee..... "At this point, what fucking difference does it make?"
Ha! Like the newsies could throw a spiral.
"He laughed, and said " who cares?"
That's most of the usa"
So?
The markets are rigged, by rich jooz.
I guess its the goyims fault the jews lord so much power over them?
"I guess its the goyims fault the jews lord so much power over them?"
Yes it is.
Can we get him on Yellencare? I mean, the Fed's balance sheet is in need of expansion and all. Who cares who's responsible to pay the bill, just keep ordering table service.
I need to buy some ordinary copper pipe for my house today. Retail price is up, not down.
Yes, doesn't seem to have caught up to retail as gutters are still pretty damn expensive too....have to work off the expensive inventory and these companies aren't buying many replacements at the lower prices it would seem
The guys who sell pipe don't sit by the teevee watching cramer brah.
It's so bad that the dumpster divers don't bother messing with it any more.
That happened back in September, I thought.
But crack is crack, I guess.
No worries, the DOW has already reversed half of the over 400 point loss from this mornings futures so it's all good...
Plunge protection team in the US is working overtime this morning...amazing with the Chinese collars off what we could see tomorrow...-20% not out of the question...then who wants to be holding their BTFD purchases at the end of the day today?
china's stock market is massively overvalued vs slowing growth. Commodities are crashing as people come to this realization. It's a reblancing. What exactly does this change in the US? Sure it hurts commodity producers here but it's not 2008.
but what does it all mean, Basil?
Huge volume spikedwn there... Hmmm...
Who was selling?
Glanore? Noble? both?
Watch em both. and keep an eye on Mercuria and Vitol in the enrgy sector and
Castleton in the metls too.
IS THERE ANY WONDER WHY obama went after the guns in a MAJOR way last week!
That rat bastard KNOWS things are precipitously getting worse!
That "over supply of ships" is getting over supply-er, with the Baltic Dry Index hitting another new low of 445
Odd how Investopedia never makes any mention of an over supply of ships, but does mention this as "a leading indicator of economic growth"
Now it will only cost our government 10 cents to make a penny.
Wow totally pointless post.
There aren't enough minerals on the planet for everyone to use pm's as currency.
Not at their current valuation, no.
Let me guess, you are a banker.
No worries, such "let the majority eat cake" monetary experiments always turn out the same way.
The point is that NO ONE and NO GOVERNMENT should be able to simply create as many paper claims as they like on real good and services you stupid fuck.
"The point is that NO ONE and NO GOVERNMENT should be able to simply create as many paper claims as they like on real good and services you stupid fuck."
Now, now, let's be nice here. You forget that the banker types never can differentiate between a monetary system based on promised labor (FRN's) versus one based on completed labor (bullion/PMs).
I'm in the stainless steel business and Nurse Nickel just informed us our massive inventory has cancer.
copper is $2 per pound? Are you kidding me?
Dr Copper is not just sick ... it needs to make out a Last Will and Testament !!!
Code blue: An emergency situation announced in a hospital or institution in which a patient is in cardiopulmonary arrest, requiring a team of providers (sometimes called a 'code team') to rush to the specific location and begin immediate resuscitative efforts.