Physical buyers win battle for copper market as funds retreat

Investors fleeing the copper market are likely to be sidelined for many months, leaving the field clear for physical players who expect demand in top consumer China and elsewhere to deteriorate over coming months and weigh on prices.

A fund buying frenzy, based on an expected shortage of copper relative to demand, sparked a rally on the London Metal Exchange (LME) earlier this year, which quickened as momentum traders entered the fray to lift prices to a record high above $11 100 a metric ton in May.