Base metals have remained strong as stimulus optimism takes hold, however, there is an increasing level of bearishness on the ground in China, TDS com
Base metals see long positions liquidated
“With the upcoming plenary in China gaining much market attention, base metals have remained strong as stimulus optimism takes hold. However, our monitoring of top traders on the Shanghai Futures Exchange (SHFE) highlights an increasing level of bearishness on the ground in China.”
“Traders added almost 5k lots short and liquidated long positions in Copper, seeing their net short position grow to roughly the largest level it has been since the start of the year. Similarly, in Aluminum, Chinese traders added 8k lots short and reduced long positions, seeing their position turn net short after holding a significant long position. Zinc also saw a strong liquidation of 8k lots of long positions.”
“Pressures are mounting on industrial metals as our global commodity demand gauge continues to weaken. Any disappointment over potential Chinese stimulus will likely see continued liquidations of inflated positions. As bullish momentum fails to manifest, CTAs have emerged as recent sellers of the Red Metal, while Aluminum could also be in the near-term spotlight.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
