Sentiment is becoming more bullish on copper with equities outpacing the copper price, similar to earlier this year, say analysts at RBC.
Speculative long copper positioning is also ramping up in line with the rebound in sentiment, added the Canadian bank.
“Importantly, physical copper market indicators are all screening positively with an ongoing drawdown in Shanghai inventories, strong copper physical import premia, and record low smelter treatment charges," said RBC.
Global copper equities are currently pricing in around US$4.76/lb for copper
Ratings currently are 'sector perform' for Antofagasta PLC (LSE:ANTO), Anglo American, and Rio Tinto with an 'outperform' stance on Glencore.