Copper prices have rallied from their January lows, but investors looking for further hefty gains may be disappointed as ample supplies are likely to more than offset stronger demand in top consumer China.
Expectations of higher prices can be seen in data from the London Metal Exchange showing more funds still betting on higher than on lower prices.
Funds’ net long position at 36,019 lots or more than 900,000 tonnes is down from 42,624 lots on Oct. 12, suggesting some are rethinking, but it is still more than three times the 9,987 lots clocked on Sept. 12.
Fears about demand growth in China, which accounts for nearly half of global consumption estimated at around 22 million tonnes this year, pushed copper to $4,318 a tonne in January, its lowest since May 2009.
