Copper bears retreat

London
Copper bears appear to have taken cover, but they are unlikely to hide for long as falling output costs due to "currency wars" and weak Chinese demand growth provide ample ammunition for another attack over coming months.
Benchmark copper on the London Metal Exchange fell to a six-year low of $4,855 a tonne on Aug. 24, since which time prices of the metal used in power and construction have recovered to above $5,000 a tonne. But the relief is likely to be brief.
"Why would I buy today if I think I'll be able to pick it up cheaper tomorrow. You need to see blood on the street before the market tries to balance itself and that won't happen while producers are still making money," said Christoph Eibl, chief executive at Tiberius Asset Management.
"Falling emerging-market currencies are a gift for producers in those regions, given that they cover the drop on LME prices, and there is a high likelihood they will fall further and copper prices will fall alongside them."