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Copper and Silver ETPs See Sharp Demand Rebound

ACCIAIO

ETF Securities’ commodity ETP data show continued strong demand for copper ETPs, as changing fundamentals have boosted  sentiment towards the metal. Silver has also seen strong investor interest, as the sharp price decline of a few weeks ago and a large… 


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            reduction of speculative longs in the futures market has attracted investors back to the metal. Europe listed gold ETPs saw profit-taking as the gold price hit new all-time Euro highs, while US listed gold ETP flows were flat.
            • Copper ETPs saw large inflows last week.   ETFS Copper (COPA) saw $22mn of inflows as falling copper inventories  in China, supply disruptions due to copper mine strikes in Chile, and expectations of a pick-up in China copper imports improved sentiment towards the metal.  
            • Physically-backed silver ETCs saw large inflows for 2nd week.  With speculative longs in the futures market substantially reduced, the silver price down sharply from its early May high, and some confidence returning to markets, long silver ETPs experienced  nearly $24mn of inflows last week.  This is the second consecutive  week of strong inflows.  The silver price rebounded 6.7% last, making it the best performing commodity on the ETFS commodity platform.  Despite the sharp price declines earlier in the month, the silver price is still up 21% so far this year and 104% over the past 12 months.  
            • European investors take profit on gold ETCs. Gold ETPs saw nearly $80mn of outflows last week.  It is interesting to  note that all of the outflows occurred in European listed gold ETPs. During the week ETF Securities’ US-listed gold ETPs net flows were flat.  It is unlikely to be a coincidence that European-listed gold ETPs are seeing outflows at the same time that the gold price is hitting new all-time highs in Euro, indicating profit-taking may be a motivation for some of the selling.
            • Energy sees outflows for the second consecutive week. Both oil and natural gas ETPs saw outflows last week.  With global growth indicators showing some weakness, inventory data less supportive and MENA political issues currently off the headlines, long oil positions been falling.  
            Overall positioning, however, remains strongly net long, with total assets in ETFS’ oil ETPs standing at $704mn.  Natural gas  ETPs have seen steady outflows over the past month. 

            Source: ETFWorld – ETF Securities Commodity ETP Weekly

             

            – Valuesabove100% indicatean above average turnover compared to either the prior 30 trading days or the prior 260 trading days.

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