UNITED KINGDOM March 17 2014 3:35 PM
LONDON (Scrap Register): Copper is one of the world’s most growth-sensitive and China-leveraged assets, and recent signals have been worryingly weak, said Barclays in a research note.
However, the recent sell-off seems overdone, in our view, since micro trends have likely bottomed. If the government again leans on targeted investment to protect growth, it would be positive for metals demand.
With that, Barclays expects more volatility this year and think the risk/reward of buying copper at these lows is attractive.