The relief rally in copper is running out of steam. Economists at TD Securities expect the metal to dip under key support levels.

Copper appears to be in a more precarious position than its peers

“The metals complex is vulnerable to further weakening in the coming months, which fits with our view that the trading regime in base metals has morphed into a sell-rallies regime.”

“Copper appears to be in a more precarious position than its peers given its lower energy intensity, but CTA trend followers could now add to their shorts below $9,505/t.”

“A set-up is forming for copper prices to ultimately break below the support levels which have held since early-2021.”