Morning from Europe!

Another strong 24 hours for Copper, Silver and other metals as the “real world” is still catching up to the AI / data-center cycle seen since 2023.

The signals out of Chinese proxy-commodities remain mixed with Copper and Steel (or Iron Ore) diverging, which could be a hint that China is swiftly changing the focus from classic road and bridges to initiatives within EVs, the electrical grid and weaponry.

With the land-slide in input costs for food, energy and chemicals (our proprietary necessity impulse indicator), the restocking environment remains very strong and the Chinese efforts to re-stock Copper is the perfect anecdotal evidence of the actual restocking that is ongoing.

Do we have an outright melt UP ahead of us in commodities? We tend to think so, and you can find out more about our thesis in the weekly Energy Cable publication here.

Chart 1: A melt up in commodities ahead of us?