Copper prices have been rising albeit there has been a decline since mid-May. There has been an increase in the spread between the first- and second-month copper futures prices which are telling us there is a tight supply situation. Despite less building in China, the world demand for copper is increasing and mining production has not kept pace with this demand. Unfortunately, it is not easy to just increase mine production.
Can you trade on the potential copper shortage? If you are trading with a holding period inside a month, the answer is not likely, but if you are willing to hold copper for an extended period, it is more likely to be a good trade. Trading long-term fundamentals is less profitable, but the long-term environment can support tilts in positions.
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