From Goehring & Rozencwajg
After peaking at over 900,000 tonnes in early 2018, exchange inventories—driven by the market’s deficit conditions—steadily shrank to a little over 160,000 tonnes. This extreme tightness triggered the copper short squeeze that rattled the COMEX futures exchange in April and May. Yet, paradoxically, even as our modeling continues to point to persistent deficits, exchange inventories have surged.
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