China’s rare copper export boom signals more than weak demand

News Snapshot:

A rare burst of Chinese exports has deflated bull spirits in the copper market, with funds dumping long positions and prices down by 16% from the record highs seen in May. The world’s largest buyer of copper shipped out an unprecedented 158,000 metric tons of refined metal in June. First-half exports of 302,000 tons were already higher than any full calendar year since 2019. This break of normal trade patterns has punctured a bull narrative of constrained supply and cyclical demand recovery. Weak Chinese purchasing managers indices show that activity in the country’s manufacturing sector sank to a five-month low...